This paper studies equilibria for economies characterized by moral hazard (hidden action), in which the set of contracts marketed in equilibrium is determined by the interaction of financial intermediaries. The crucial aspect of the environment that we study is that intermediaries are restricted...

One of the most elusive ingredients in the success of a deal is what deal makers euphemistically refer to as "Social issues" - how power, position, and status will be allocated among the merging companies' executives. A failure to resolve these issues often leads to the destruction of...