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Persistent link: https://www.econbiz.de/10003497568
Start-up entrepreneurs are often commercially inexperienced. In giving managerial advice, venture capitalists can importantly enhance the success of innovative but highly risky ventures. The supply of experienced venture capitalists is not easily increased, however. When the rate of business...
Persistent link: https://www.econbiz.de/10011398098
This paper proposes a simple partial equilibrium model to investigate the effects of government policy on venture capital backed investments. Giving up an alternative career, entrepreneurs focus their effort on a single, high risk venture each. Venture capitalists acquire an equity stake and...
Persistent link: https://www.econbiz.de/10011398877
Venture capitalists not only finance but also advise and thereby add value to young innovative firms. The prospects of venture capital backed firms thus depend on joint efforts of entrepreneurs and informed venture capitalists, and are subject to double moral hazard. In financing a portfolio of...
Persistent link: https://www.econbiz.de/10011514038
In this paper we set up a model of start-up finance under double moral hazard. Entrepreneurs lack own resources and business experience to develop their ideas. Venture capitalists can provide start-up finance and commercial support. The effort put forth by either agent contributes to the firm s...
Persistent link: https://www.econbiz.de/10011404427
The paper proposes a simple equilibrium model of venture capital, entrepreneurship and innovation. Venture capitalists not only finance but also advise start-up entrepreneurs and thereby add value to new firms. The paper demonstrates how a productive and active VC industry boosts innovation...
Persistent link: https://www.econbiz.de/10011409024
Trust between parties should drive the negotiation and design of contract: if parties did not trust each others' reaction to unplanned events, they might agree to pay higher costs of negotiation to complete contracts. Using a unique sample of U.S. principal-agent consulting contracts and a...
Persistent link: https://www.econbiz.de/10012318377
Emotions were central to the development of economics, especially in utility theory in classical economics. While … neoclassical utility theory basically abolished emotions, behavioural economics more recently reintroduced emotions in utility … theory. Beyond utility theory, economic theorists use emotions to explain behaviour which otherwise could not be understood …
Persistent link: https://www.econbiz.de/10011499845
We investigate behavioral responses to a staggered disruption in the supply of prescription opioids across U.S. states: the introduction of electronic Prescription Drug Monitoring Programs (PDMPs). Using administrative datasets, we find PDMPs curtail the proliferation of prescription opioids....
Persistent link: https://www.econbiz.de/10013177127
automatic. We predict the occurrence of uncontrolled coping .emotional outbursts .as a function of an individual's theory … not go hand in hand with rising stress. First steps towards a theory of therapy show how stressed individuals can improve …
Persistent link: https://www.econbiz.de/10011819320