This chapter reviews the literature on the theory of relational incentive contracts.  It motivates the discussion by the classic applications of relational contracts to the GM-Fisher Body relationship and the relationships between Japanese automobile manufacturers and their subcontractors.  It...

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This paper evaluates alternative strategic models of competition and market structure in online retailing, and makes comparisons with traditional retailing. Online consumers are less concerned than traditional consumers about spatial characteristics and more concerned about hidden quality...

Interconnections among financial institutions create potential channels for contagionand amplification of shocks to the financial system. Contagion occurs when a shock tothe assets of a single firm causes other firms to default through the network of obligations.We say that contagion is weak if...

This paper estimates a model of retail oligopoly where consumers choose between stores using consumer data which specifies the firm operating the chosen store and not the specific store (as is convenient practice for retail surveys). The location and other characteristics of the stores are...

This paper evaluates alternative strategic models of competition and market structure in online retailing, and makes comparisons with traditional retailing. Online consumers are less concerned than traditional consumers about spatial characteristics and more concerned about hidden quality...

Competition between hopping centres, which may take the form of supermarkets (or hypermarkets), shopping malls or high streets, is emplored in a model in which the consumers' choice of centre is determined by the utility available from visiting different centres, based on the range of products...

This paper discusses the incentive to bundle when consumer valuations are non-additive and/or when products are supplied by separate sellers.  Whether integrated or separate, a firm has an incentive to introduce a bundle discount when demand for the bundle is more elastic than the overall...

In recent years bonuses tied to performance have become commonplace in banks and other financial institutions; indeed they now constitute a major part of employee compensation.  The practice was originally justified by academic work on principal-agent contracts, which argued that performance...

Alpha is the amount by which the returns from a given asset exceed the returns from the wider market.  The standard way of estimating alpha is to correct for correlation with the market by regressing the asset's returns against the market returns over an extended period of time and then apply...