Chand, Arya kumar srustidhar; k, Amit R - In: Economics Bulletin 35 (2015) 2, pp. 878-884
In this paper, we discuss a scenario in capital structure where two divisional managers compete for capital from a firm for their projects in a perfect information setting. We consider verifiable profits and study take-it-or-leave-it contracts where the managers ask for capital from the firm...