Cestone, G.; White, L. - Groupe de Recherche en Économie Mathématique et … - 1999
In this paper we show that the "Coase problem" of the private oversupply of inputs applies equally to investors supplying capital to firms. Investors would like to commit to supplying only the monopoly amount of capital to an industry, but ex-post may be tempted to fund a second firm, devaluing...