We consider the role of product market competition in disciplining managers in a moral hazard setting. Competition has two effects on a firm. First, the expected revenue or the marginal benefit of effort declines, leading to weakly lower effort. Second, the cost of inducing high effort increases...

We consider a rationing mechanism for selling a common-value object. Under certain conditions, the seller earns higher revenue from rationing the object, rather than holding a second-price auction. The mechanism is formally equivalent to dividing the object into k units, and allocating (1/k)...

We model an infinite horizon trading game of a limit order market with informed traders. Agents with a private and common value motive for trade randomly arrive in a market and may either post prices (submit limit orders) or accept posted prices (submit market orders). If their orders have not...

We consider a rationing mechanism for selling a common-value object. Under certain conditions, the seller earns higher revenue from rationing the object, rather than holding a second-price auction. The mechanism is formally equivalent to dividing the object into k units, and allocating (1/k)...