Cvitanic, Jaksa; Radas, Sonja; Sikic, Hrvoje - In: Journal of Economic Dynamics and Control 35 (2011) 10, pp. 1710-1730
We find the optimal time for entering a joint venture by two firms, and the optimal linear contract for sharing the profits. We consider risk-sharing, timing-incentive and asymmetric decisions contract designs. If the firms are risk-neutral and the cash payments are allowed, all three designs...