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Bühler, Stefan; Schmutzler, Armin - C.E.P.R. Discussion Papers - 2003

We examine vertical backward integration in oligopoly. Analysing a standard linear Cournot model, we find that for wide parameter ranges (i) some firms integrate, while others remain separated, and (ii) efficient firms are more likely to integrate vertically. Adopting a reduced-form approach, we...

Persistent link: https://www.econbiz.de/10005504590

Competition for traders and risk

Bijlsma, Michiel; Boone, Jan; Zwart, Gijsbert - C.E.P.R. Discussion Papers - 2012

The financial crisis has been attributed partly to perverse incentives for traders at banks and has led policy makers to propose regulation of banks' remuneration packages. We explain why poor incentives for traders cannot be fully resolved by only regulating the bank's top executives, and why...

Persistent link: https://www.econbiz.de/10011084687

Bidding in Mandatory Bankruptcy Auctions: Theory and Evidence

Eckbo, B Espen; Thorburn, Karin S - C.E.P.R. Discussion Papers - 2005

We analyse bidding incentives and present evidence on takeover premiums in Sweden’s mandatory bankruptcy auctions. The typical auction attracts multiple bidders and results in the firm being sold as a going concern. We model the incentive of the bankrupt firm’s main creditor (a bank) to...

Persistent link: https://www.econbiz.de/10005792429

Credit Risk Transfer and Financial Sector Performance

Marsh, Ian W; Wagner, Wolf - C.E.P.R. Discussion Papers - 2004

In this Paper we study the impact of credit risk transfer (CRT) on the stability and the efficiency of a financial …

Persistent link: https://www.econbiz.de/10005662362

Contracting With Synergies

Edmans, Alex; Goldstein, Itay; Zhu, John - C.E.P.R. Discussion Papers - 2013

This paper studies multi-agent optimal contracting with cost synergies. We model synergies as the extent to which … effort by one agent reduces his colleague's marginal cost of effort. An agent's pay and effort depend on the synergies he … exerts, the synergies his colleagues exert on him and, surprisingly, the synergies his colleagues exert on each other. It may …

Persistent link: https://www.econbiz.de/10011083428

Contracting With Synergies

Edmans, Alex; Goldstein, Itay; Zhu, John - C.E.P.R. Discussion Papers - 2013

Persistent link: https://www.econbiz.de/10011083625

Bargaining failures and merger policy

Burguet, Roberto; Caminal, Ramon - C.E.P.R. Discussion Papers - 2012

synergies generated by a merger may vary substantially depending on the identity of the participating firms. The model …

Persistent link: https://www.econbiz.de/10011084187

Financing Through Asset Sales

Edmans, Alex; Mann, William - C.E.P.R. Discussion Papers - 2013

Most research on firm financing studies the choice between debt and equity. We model an alternative source -- non-core asset sales -- and identify three new factors that drive a firm's choice between selling assets and equity. First, equity investors own a claim to the cash raised. Since cash is...

Persistent link: https://www.econbiz.de/10011084569

Should a principal hire one agent or two agents to perform two sequential tasks?

Schmitz, Patrick W - C.E.P.R. Discussion Papers - 2010

A principal should hire one agent to perform two sequential tasks when the tasks are conflicting (i.e., a first-stage success makes second-stage effort less effective), while she should hire two different agents when the tasks are synergistic.

Persistent link: https://www.econbiz.de/10008611012

Dollarization, Bailouts and the Stability of the Banking System

Gale, Douglas M; Vives, Xavier - C.E.P.R. Discussion Papers - 2001

Central bank policy suffers from time-inconsistency when facing a banking crisis: A bailout is optimal ex post but ex ante it should be limited to control moral hazard. Dollarization provides a credible commitment not to help at the cost of not helping even when it would be ex ante optimal to do...

Persistent link: https://www.econbiz.de/10005788955