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Team Production, Sequential Investments, and Stochastic Payoffs

Lülfesmann, Christoph - In: Journal of Institutional and Theoretical Economics (JITE) 157 (2001) 3, pp. 430-430

This paper investigates a team production problem where two parties invest sequentially to generate a joint surplus. We find that the first best can be implemented even if the investment return is highly uncertain. The optimal contract entails a basic dichotomy: it is a simple option contract if...

Persistent link: https://www.econbiz.de/10005581970

The Corporate Form as a Solution to a Discursive Dilemma

Rock, Edward B. - In: Journal of Institutional and Theoretical Economics (JITE) 162 (2006) 1, pp. 57-71

of the discursive dilemma in the firm context and the extent to which the presence of the discursive dilemma can provide …

Persistent link: https://www.econbiz.de/10005581971

Ownership and Allocation of Capital: Evidence from 44 Countries

Eklund, Johan E.; Desai, Sameeksha - In: Journal of Institutional and Theoretical Economics (JITE) 170 (2014) 3, pp. 427-452

In an efficient economy, capital should be quickly (re)allocated from declining firms and sectors to more profitable investment opportunities. This process is affected by the concentration of corporate control, which in turn is affected by market institutions. We employ a panel of 11,984 firms...

Persistent link: https://www.econbiz.de/10010903207

The Sugar Daddy Game: How Wealthy Investors Change Competition in Professional Team Sports

Lang, Markus; Grossmann, Martin; Theiler, Philipp - In: Journal of Institutional and Theoretical Economics (JITE) 167 (2011) 4, pp. 557-577

Professional sports leagues have witnessed the appearance of sugar daddies - people who invest enormous amounts of money in clubs and become their owners. This paper presents a contest model of a professional sports league that incorporates this phenomenon. We analyze how the appearance of a...

Persistent link: https://www.econbiz.de/10009421921

Lifetime Employment Contract and Quantity Competition with Profit-Maximizing and Joint-Stock Firms

Ohnishi, Kazuhiro - In: Journal of Institutional and Theoretical Economics (JITE) 166 (2010) 3, pp. 462-478

This paper studies two-stage Cournot duopoly competition with a profit-maximizing firm and a joint-stock income …-per-unit-of-capital-maximizing firm. In the first stage, each firm noncooperatively decides whether to offer lifetime employment as a strategic commitment … profitable only for the joint-stock firm. Furthermore, the paper examines interactions between an incumbent and a potential …

Persistent link: https://www.econbiz.de/10008794551

Anarchy, Monopoly, and Predation

Leeson, Peter T. - In: Journal of Institutional and Theoretical Economics (JITE) 163 (2007) 3, pp. 467-482

Although institutions rooted in the folk theorem can support self-enforcing exchange in a wide variety of contexts, their potential to create cooperation is not limitless. In particular, the folk theorem may break down when some agents are physically stronger than others. I demonstrate this in...

Persistent link: https://www.econbiz.de/10005823345

Overlapping Jurisdictions, Proprietary Communities, and Competition in the Realm of Law

Stringham, Edward - In: Journal of Institutional and Theoretical Economics (JITE) 162 (2006) 3, pp. 516-534

Frey [2001] and others propose subjecting governments to competition within their jurisdiction, but classical liberals argue that having competing law enforcers cannot work. This article describes a hybrid system that relies on markets but has one law enforcement agency per region, with profit...

Persistent link: https://www.econbiz.de/10005823353

Lessons from the Past: Legal Transformation in Germany of the 19th Century

Schroeder, Rainer - In: Journal of Institutional and Theoretical Economics (JITE) 156 (2000) 1, pp. 180-180

During the 19th century, markets exploded liberally before the state began to intervene to compensate for undesired social deterioration. In the second half of the 19th century, however, legislation largely locked up itself, except for laws which dealt mainly with technical modernization, such...

Persistent link: https://www.econbiz.de/10005823370

Uncertainty of Law and the Legal Process

Dari-Mattiacci, Giuseppe; Deffains, Bruno - In: Journal of Institutional and Theoretical Economics (JITE) 163 (2007) 4, pp. 627-656

There is extensive literature on whether courts or legislators produce efficient rules, but which of them produces rules efficiently? The law is subject touncertainty ex ante; uncertainty makes the outcomes of trials difficult to predict and deters parties from settling disputes out of court. In...

Persistent link: https://www.econbiz.de/10005823412

General and Specific Legal Rules

Mahoney, Paul G.; Sanchirico, Chris William - In: Journal of Institutional and Theoretical Economics (JITE) 161 (2005) 2, pp. 329-329

Legal rules may be general (that is, applicable to a broad range of situations) or specific. Adopting a custom-tailored rule for a specific activity permits the regulator to make efficient use of information about the social costs and benefits of that activity. However, the rule maker typically...

Persistent link: https://www.econbiz.de/10005764379