Showing 1 - 10 of 10
Little is known theoretically, and even less empirically, about the relationship between firm boundaries and the allocation of decision rights within firms. We develop a model in which firms choose which suppliers to integrate and whether to delegate decisions to integrated suppliers. We test...
Persistent link: https://www.econbiz.de/10011872111
Persistent link: https://www.econbiz.de/10011928965
Little is known theoretically, and even less empirically, about the relationship between firm boundaries and the allocation of decision rights within firms. We develop a model in which firms choose which suppliers to integrate and whether to delegate decisions to integrated suppliers. We test...
Persistent link: https://www.econbiz.de/10011853182
Persistent link: https://www.econbiz.de/10011876141
Persistent link: https://www.econbiz.de/10012065310
Persistent link: https://www.econbiz.de/10005443359
Many economic decisions can be described as an option exercise or optimal stopping problem under uncertainty. Motivated by experimental evidence such as the Ellsberg Paradox, we follow Knight (1921) and distinguish risk from uncertainty. To afford this distinction, we adopt the multiple-priors...
Persistent link: https://www.econbiz.de/10005443375
Entrepreneurs often face undiversi¯able idiosyncratic risks from their business invest- ments. Motivated by this observation, we extend the standard real options approach to investment to an incomplete markets environment and analyze the joint decisions of busi- ness investments,...
Persistent link: https://www.econbiz.de/10004972846
This paper studies the interaction between product market competition and takeover activity. We develop a dynamic model in which profit-maximizing production decisions of all firms in an industry as well as the timing and terms of a merger between two firms are jointly determined. We show that...
Persistent link: https://www.econbiz.de/10008545855
This paper develops a continuous time real options model to study the interaction between industry structure and takeover activity. In an asymmetric industry equilibrium, firms have an endogenous incentive to merge when restructuring decisions are motivated by operating and strategic benefits....
Persistent link: https://www.econbiz.de/10005209364