We study the effects of competition in a context in which people's actions can not be contractually fixed. We find that in such an environment the very presence of competition does neither increase efficiency nor does it yield any payoff gains for the short side of the market. We also find that...

Managerial reputation could induce managers to make mixed blessing acquisitions for shareholders. From a managerail ability learning model, we show that managers' acquisitions may reduce the firm's solvency unless the acquisition return first-degree stochastic dominates the alternative action...

We study optimal contracts in a simple model where employees are averse to inequity as modelled by Fehr and Schmidt (1999). A "selfish" employer can profitably exploit such preferences among its employees by offering contracts which create inequity off-equilibrium and thus, they would leave...

We discuss sincere voting when voters have cardinal preferences over alternatives. We interpret sincerity as opposed to strategic voting, and thus define sincerity as the optimal behavior when conditions to vote strategically diminish. When voting mechanisms allow for only one message type...

We discuss sincere voting when voters have cardinal preferences over alter- natives. We interpret sincerity as opposed to strategic voting, and thus define sincerity as the optimal behaviour when conditions to vote strategically vanish. When voting mechanisms allow for only one message type we...

This paper analyses the costs and benefits of using a Main Bank (MB) as a financial provider, which is so common in countries such as Japan. Several banks lend resources to a particular firm but only one monitors and remains responsible to other participants. These inside banks act as fund...

In this paper we develop a theory of union bargaining power based on firm specific skills acquired by the insider workforce.

This paper investigates the effects of monetary rewards on the pattern of research. We build a simple repeated model of a researcher capable to obtain innovative ideas. We analyse how the legal environment affects the allocation of researcher?s time between research and development. Although...

I analyze, in the context of business and science research collaboration, how the characteristics of partnership agreements are the result of an optimal contract between partners. The final outcome depends on the structure governing the partnership, and on the informational problems towards the...

We study how personal relations affect performance in organizations. In the experimental game we use a manager has to assign different degrees of decision power to two employees. These two employees then have to make distributive decisions which affect themselves and the manager. Our focus is on...