This paper provides evidence from a natural experiment on the importance of tacit knowledge that workers have about firms' intangible assets for competition in product and labor markets. First, evidence is presented on product and labor market imperfections across firms in manufacturing and...

We propose a modeling framework which allows for creating probability predictions on a future market crash in the medium term, like sometime in the next five days. Our framework draws upon noticeable similarities between stock returns around a financial market crash and seismic activity around...

We study optimal incentive contracts for workers who are reciprocal to management attention. When neither worker's effort nor manager's attention can be contracted, a double moral-hazard problem arises, implying that reciprocal workers should be given weak financial incentives. In a...