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This paper considers settlement negotiations between a single defendant and N plaintiffs when there are fixed costs of litigation. When making simultaneous take-it-or-leave-it offers to the plaintiffs, the defendant adopts a divide-and-conquer strategy. Plaintiffs settle their claims for less...
Persistent link: https://www.econbiz.de/10005582012
model to legal valuation, and a small but growing body of scholarship endorses this concept. However, option theory is not …
Persistent link: https://www.econbiz.de/10012750556
- particularly investment banks - to hide the extent of their leverage, to the detriment of all creditors. This article argues that …
Persistent link: https://www.econbiz.de/10012765487
incomplete information) and empowerment on trust (investment by a principal) and trustworthiness (reciprocal behavior of an agent …). We implement a simple two-person investment game. We find that when principals are empowered by being able to punish … agents who may not act in a way the principal believes is in the principal’s best interest, trust and investment increases …
Persistent link: https://www.econbiz.de/10010699611
aggressive development of a basic innovation by better informed venture-backed firms is used as a signaling device to enhance the … sale price of the innovation. We then show that incumbents can undertake early, preemptive, acquisitions to prevent such … signaling driven overinvestment, despite the risk of buying a non-productive innovation. Therefore, to exist in equilibrium …
Persistent link: https://www.econbiz.de/10005835952
medium Italian enterprises highlights the low use of capital, the local roots, the importance of product innovation, the … aspect stressed in the work is that the processes of innovation and internationalization that underlie the strategies of …
Persistent link: https://www.econbiz.de/10010743508
medium Italian enterprises highlights the low use of capital, the local roots, the importance of product innovation, the … aspect stressed in the work is that the processes of innovation and internationalization that underlie the strategies of …
Persistent link: https://www.econbiz.de/10011109651
of innovation as well as correlative data that show a negative correlation between income inequality and levels of … innovativeness. Our two models suggest that unequal access to problems slows innovation by reducing the level and variety of human … capital applied to problems. More interestingly, both models show that the rate of innovation decline becomes much more …
Persistent link: https://www.econbiz.de/10010835767
When Argentine sovereign default in December 2001 led to a collapse of the peso, the burden of dollar debt became demonstrably unsustainable. But it was not clear what restructuring was feasible, nor when. Eventually, in 2005 after a delay of more than three years, a supermajority of creditors...
Persistent link: https://www.econbiz.de/10005504331
We consider how parties’ formal contracts are underpinned by their ongoing relationship and how welfare changes as the legal system improves. Regardless of impatience, the parties write formal contracts that they would not honor–despite stipulated penalties–if they interacted only once....
Persistent link: https://www.econbiz.de/10010662396