Previous studies have acknowledged the tradeoff between relationships and competition in financial intermediation. In this paper, we explore the structural determinants of this tradeoff in the investment banking market, by deriving it from the underlying relationship technology. In the model,...

We study how the sequence of financing of R&D finance varies according to the ease with which property rights over knowledge can be defined. There are two financiers, a venture capitalist and a corporation. The knowledge acquired in costly research becomes embodied in the researcher’s human...