This paper presents the first model where entry deterrence takes place through financial rather than product-market channels. In existing models, a firm's choice of financial instruments deters entry by affecting product market behavior; here entry deterrence occurs by affecting the credit...

Two agents exert complementary efforts on a principal's project. When incentive contracts are public, it is better for the principal to contract directly with each agent. When instead contracts are observed only by their direct signatories, effort incentives are muted because each agent...