-contractible maintenance investment. Since, however, incentive provision is costly, long-term contracts will be employed only when, due to the …

equilibria with coordination failures. Different types of inefficiency arise when sellers undertake investment before market …

ruled out, we find that option contracts significantly improve investment incentives compared to a no-contract treatment …

partnership in which they have invested, bear the costs yet forego the benefits of the investment, join another partnership …, invest there anew, and appropriate the surplus created by the new investment. To capture the idea we introduce the notion of … reinvestment-proof equilibria in which no agent has an incentive to reinvest or to change his investment in the current firm. We …

Consider a seller who can make an observable but non-contractible investment to improve an intermediate good that is … information, additional investment incentives are generated by the seller's desire to pretend a strong outside option. On the …

incompleteness affects investment and production decisions differently depending on the organization form, the intensity of this …