This paper shows how this becomes an informational first-mover advantage that turns innovators into the market leader.

This paper shows how a financial institution can profit from the development of financial products even if they are unpatentable.

This paper investigates empirically the illiquidity of majority blocks of shares in the context of a search model of block trades. The search model incorporates two aspects of illiquidity, or search frictions. First, upon a liquidity shock, the incumbent blockholders may be forced to sell to a...

Investment banks that develop new corporate securities systematically lead the new underwriting market despite being imitated early by equally competitive rivals. We study how innovators and imitators set underwriting fees in order to identify empirically the source of this advantage. Using data...

This paper studies the impact of financing constraints in patent races. We develop a model of optimal contracting where firms finance their R&D expenditures with an investor who cannot verify their effort. In equilibrium, firms are more likely to win the more cash and assets they hold prior to...

Specifically, this paper analyzes how, in addition to the improvement in the performance of the firm and the quality of service, the privatization of the telecommunications industry in Peru led to price changes that had an impact on consumer welfare and that may be correlated with the negative...

An inherent difficulty in valuing controlling blocks of shares is the illiquidity of the market. We explore the pricing implications associated with the illiquidity of controlling blocks of shares in the context of a search model of block trades. The model considers several dimensions of...