We present new evidence on consumer liquidity constraints and the credit market conditions that might give rise to them. Our analysis is based on unique data from a large auto sales and financing company that serves the subprime market. We first document the role of short-term liquidity in...

We compare the costs and benefits of profit-sharing partnerships relative to the corporate form of organization. We show that organizing as a partnership can be desirable in human-capital intensive industries where product quality is hard to observe. The theory explains the relative scarcity of...

Set-asides and subsidies are used extensively in government procurement and natural resource sales. Economic theory is ambiguous on how such policies affect both auction participation and auction prices. We study the use of these policies, targeted at small businesses, in the context of U.S....

We present a dynamic quantity setting game, where players may continuously adjust their quantity targets, but incur convex adjustment costs when they do so. These costs allow players to use quantity targets as a partial commitment device. We show that the equilibrium path of such a game is...