Bailing out banks requires overcoming debt overhang as well as dealing with adverse selection with respect to the quality of banks' balance sheets, in terms of heterogeneity in both the likelihood and extent of their potential shortfalls, of future asset values vis-a-vis contractual debt...

Bailing out banks requires overcoming debt overhang, in order to sustain their incentives for new lending, as well as dealing with adverse selection with respect to the quality of banks’ balance sheets. We examine bailouts that eliminate debt overhang, while attempting to minimize subsidies to...

We develop a theory of control rights in the context of licencing interim innovative knowledge for further development, which is consistent with the inalienability of initial innovator's intellectual property rights. Control rights of a downstream development unit, a buyer of the interin...