This paper studies the effects of incentive mechanisms and of the competitive environment on the interaction between schools and students, in a set-up where their effort affects the students' educational attainment. We show that increasing the power of the incentive scheme and the effectiveness...

This paper uses a very simple example (two goods, linear symmetric demand and cost) to study the effects of the price cap regulatory mechanism. We show that if a given price vector is preferred (using current welfare as the criterion) to another, then it is not necessarily the case that it is...

We study a vertical relationship between two firms, and we show that the extent of the downstream firm's borrowing affects the contract offered by the upstream firm. We establish a negative relationship between the level of debt and the downstream firm's probability of bankrupt. We also show...

This paper studies the endogenous determination of the nature of telephone calls, namely whether they are local or long distance. Calls between users in the same local calling area are local, and we allow the extension of this area to be treated as a strategic variable. We show that the...

This paper studies the role of the corporate governance systems in cooperatives and in investor-owned enterprises. The difference between the two forms is reduced to the type of majority needed to take decisions: one head one vote for cooperatives and proportional to capital invested in...