This paper develops a game-theoretic model to study how exclusionary contracts affect firms' incentives to invest in innovation. Several symmetric sellers compete to supply an identical product to a set of buyers, and each seller can invest in R&D to develop a higher-quality version of the...

Negotiation outcomes are commonly analyzed through equilibrium concepts, yet many agreements fail during implementation for reasons not captured by incentive structure alone This paper introduces a pre-equilibrium screening criterion for bargaining fragility based on a small set of...

Europa steht vor einem historischen Anstieg der Ausgaben für Verteidigung und Sicherheit. Werden diese zusätzlichen Mittel gut geplant, verteilt und eingesetzt, kann dies die europäischen Verteidigungsfähigkeiten grundlegend verändern und die industrielle Basis der europäischen...

Performance-contingent pay raises productivity, yet in the German Socio-Economic Panel (SOEP) only about 16% of workers report receiving performance pay, with the incidence being roughly seven percentage points higher among university graduates than among non-graduates. This coexistence of low...

Europa steht vor einem historischen Anstieg der Ausgaben für Verteidigung und Sicherheit. Werden diese zusätzlichen Mittel gut geplant, verteilt und eingesetzt, kann dies die europäischen Verteidigungsfähigkeiten grundlegend verändern und die industrielle Basis der europäischen...

Renegotiation after software development is widely adopted by firms to mitigate uncertainties in IT outsourcing. This study examines the design and choice of fixed-price versus performance-based contracts in scenarios where firms may renegotiate software debugging time with the IT vendor after...

This paper studies a continuous-time regulatory problem in which a firm holds persistent private information about demand and is subject to a flow limited-liability constraint. The regulator regulates prices through a dynamic mechanism that ensures truthful reporting of the evolving type....

Venture capital ("VC") has built a solid reputation for spurring innovation and economic growth, thus emerging as a crown jewel of the U.S. economy since the 1980s. The development of the U.S. VC market has benefited from the enabling nature of U.S. (Delaware) corporate law, which allows parties...

Venture capital ("VC") has built a solid reputation for spurring innovation and economic growth, thus emerging as a crown jewel of the U.S. economy since the 1980s. The development of the U.S. VC market has benefited from the enabling nature of U.S. (Delaware) corporate law, which allows parties...

This paper studies a large class of multi-agent contracting models with the property that agents' payoffs constitute a weighted potential game. Multiple equilibria arise due to agents' strategic interactions. I fully characterize a contracting scheme that is optimal for the principal for all...

Many business relationships begin with informal interactions and later transition to formal contracts. Using a repeated-games model with a finite horizon, we show that this hybrid-contracting approach can both prolong cooperation (intensive margin) and enable it across a broader range of...

Sellers face a critical choice: run competitive auctions or strike exclusive deals with preferred buyers. Contrary to conventional wisdom that sellers should rely on open competition, we show that a powerful seller optimally commits to a sequential `flexclusivity' arrangement - a strategic mix...