Generally, Democrats do not increase military spending, and Republicans do not raise welfare payments. Mostly, ruling politicians stick to the manifesto of their party. The current paper provides a theoretical explanation for this phenomenonthat does not assume politicians or voters to be...

Every now and then a disruptive event happens, such as the invention of the internet,that changes markets, industries, even societies. Successful well-managed companiesthrive in mature markets by focusing on doing what they do, just a little bit better.Consequently, when a disruptive event, such...

This paper develops a signalling game in which the decision to raise public equityis a real option of the …rm. Firms may use multiple signals to reveal their type:the timing of the IPO, the fraction of shares issued and the underpricing of shares.The model provides a tractable approach for...

Open source projects produce goods or standards that do not allow for the appropriation of private returns by those who contribute to these projects. In this paper we analyze why programmers will nevertheless invest their time and effort to code open source software. We argue that the particular...

It is well documented that the U.S. employment report has a strong price impact in financial markets. Based of these precision proxies, we show that prices respond significantly stronger to more precise information, even after controlling for an asymmetric price response to ’good’ and ’bad’...

The authors determines a two product company, that sells their products with different quality under an umbrella brand.

In this paper I contrast the impact of precision, i.e., the level of accuracy with which workers' performance is assessed, on wage costs in U- and J-type tournaments. In U-type tournaments prizes are fixed. In J-type tournaments only anoverall wage sum is specified. The principal can increase...

Mit Hilfe von Daten junger deutscher Franchisesysteme werden empirische Einsichten inZusammenhänge zwischen der Wahl von laufenden und einmaligen Gebühren sowie demUmsatz der Franchisenehmer gewonnen. Zusätzlich werden die Wirkungen der bei denFranchisenehmern verbleibenden unternehmerischen...

We use a large linked employer-employee data set to analyze the importance of relativewage positions in the context of individual quit decisions as an inverse measure of jobsatisfaction. Our main findings are: (1) Workers with higher relative wage positionswithin their firms are on average more...

A century ago, Thorstein Veblen introduced socially contingent con-sumption into the economic literature. This paper complements the scarceempirical literature by testing his conjecture on South African householddata and nds that Black and Coloured households spend relatively moreon visible...