We consider how trade credit can coordinate a two-echelon supply chain in the presence of supplier moral hazard and costly working capital financing. While trade credit resolves moral hazard problems in the absence of working capital financing costs, we show that this is not necessarily true...

The use of business insurance has been traditionally studied in a single-firm setting. But in reality preventing operational accidents involves the (unobservable) efforts of multiple firms. We show that, in a multi-firm setting, insurance can be used strategically as a commitment mechanism to...

Retailers are increasingly adopting a dual-format model. In addition to acting as traditional merchants (buying and then reselling goods), these retailers also provide a platform for third-party sellers to access and compete for the same customers. In this paper we investigate the strategic...

In industries where firms perform dangerous (but necessary) operations, liability costs - due to potential harm to third parties - can be significant. Firms may therefore find it optimal to exit the market, and this may lead to an inefficiently low number of incumbents. A social planner can...

When a supplier fails to comply with social and environmental standards, the buyer's reputation suffers. Reputation costs can typically be very high for the buyer whereas the supplier's liability is often limited. Conventional procurement strategies like dual sourcing mitigate the buyer's...

A project involves several “participants” - including agencies, contractors, and subcontractors - all working concurrently on multiple projects and allocating resources among them. This interdependency creates a network of otherwise unrelated projects. By constructing the largest project...

Factor investing in India has seen much recent interest – primarily due to strong returns seen in the momentum factor, compared to traditional choices for an investor. We present a framework to evaluate factor indices through the lens of the academic framework and show how much of the...

Contractors are usually not paid immediately after an invoice is submitted. Such payment delays affect the value of projects to contractors, their financing costs, decisions about project sequencing and acceptance, as well as competition among contractors. We study how these consequences of...

In perhaps no other area of competition policy is there greater dispute over the appropriate legal rule as there is over the practice of tying. The authors consider when tying is anti-competitive and when the practice should be prohibited, adopting economic efficiency as the policy criterion....

When have market participants the incentive to strike contracts that exclude potential entrants? This paper synthesizes the theory of exclusionary contracts and applies the theory to a recent antitrust case, Nielsen. We consider an incumbent facing potential entry and contracting with both...