Showing 1 - 10 of 12
This article addresses the proposition advanced by academic and press commentators that European corporation law promotes stockholder welfare better than its U.S. counterpart. Those who express that view often point to the stronger rights afforded to stockholders under the laws of the European...
Persistent link: https://www.econbiz.de/10011496242
Policymakers and scholars — both lawyers and economists — have long been pondering the optimal design of default rules. From the classic works on “mimicking” defaults for contracts and corporations to the modern rush to set “sticky” default rules to promote policies as diverse as...
Persistent link: https://www.econbiz.de/10012243405
Promising serves as an important commitment mechanism by operating on a potential cheater’s internal value system. We present experimental evidence on what motivates people to keep their promises. First, they feel that they are duty-bound to keep their promises regardless of whether promisees...
Persistent link: https://www.econbiz.de/10011581987
Over 20 years, M&A contracts have more than doubled in size – from 35 to 88 single-spaced pages in this paper's font. They have also grown significantly in linguistic complexity – from post-graduate “grade 20” to post-doctoral “grade 30”. A substantial portion (lower bound ~20%) of...
Persistent link: https://www.econbiz.de/10011582006
In a full-information, zero transactions costs world, the degree of protection afforded to an entitlement does not affect the likelihood of efficient trade. In reality, imperfect information is often inevitable. Specifically, a party will usually have incomplete information about fairness norms...
Persistent link: https://www.econbiz.de/10011673948
How does the prospect of sale affect the seller's incentive to investigate — to acquire socially valuable information about the asset? How do the disclosure rules of contract law influence the investigation decision? Shavell (1994) showed that, if sellers and buyers are symmetrically informed,...
Persistent link: https://www.econbiz.de/10011674107
When firms collude and charge supra-competitive prices, consumers can bring antitrust lawsuits against the firms. When the litigation cost is low, firms accept the cost as just another cost of doing business, whereas when the cost is high, the firms lower the price to deter litigation. Class...
Persistent link: https://www.econbiz.de/10012120107
Reverse termination fees (RTFs) are required payments by bidders when they “walk away” from a merger or acquisition, and vary significantly in size and design. In a large sample of manually collected U.S. deal contracts involving publicly traded bidders and targets, we examine the...
Persistent link: https://www.econbiz.de/10012040244
For most people, control has some intrinsic value; people care about maintaining it and will pay something to do so. Whenever a private or public institution blocks choices or interferes with agency, some people will rebel, even if exercising control would not result in material benefits or might...
Persistent link: https://www.econbiz.de/10011685007
Sellers are increasingly utilizing big data and sophisticated algorithms to price discriminate among customers. Indeed, we are approaching a world, where each consumer will be charged a personalized price for a personalized product or service. Is this type of price discrimination good or bad?...
Persistent link: https://www.econbiz.de/10011923695