We relate the organizational form of investment banking syndicates to moral hazard in team production. Although syndicates are dissolved upon deal completion, membership stability across deals represents a barrier to entry that enables the capture of quasi-rents. This improves incentives for...

In this paper, the authors provide empirical evidence consistent with the hypothesis that options market makers face risks in managing inventory that are unique to the options market. In particular, they show that risks associated with the inability to rebalance an option position continuously...