We consider a risk averse entrepreneur who approaches a diversified venture capitalist (VC) for financing of a project with positive potential return. We develop several models that capture key features of the venture financing, including staged investment, VC oversight costs and agency...

Insurance contracts are frequently modelled as principal–agent relationships. The purpose of this paper is to examine the interaction between differential bargaining power and the efficiency of insurance contracts. The analysis is undertaken in a framework of state-contingent production, which...

Information systems and the Internet have facilitated the creation ofused-product markets that feature a dramatically wider selection, lowersearch costs, and lower prices than their brick-and-mortar counterpartsdo. The increased viability of these used-product markets has causedconcern among...

It is well known that the Internet has significantly reduced consumers'search costs online. But relatively little is known about how searchcosts affect consumer demand structure in online markets. In this paper,we identify the impact of search costs on firm competition and marketstructure by...

Information systems and the Internet have facilitated the creation of used product markets that feature a dramatically wider selection, lower search costs, and lower prices than their brick-andmortar counterparts do. The increased viability of these used product markets has caused concern among...

The ready-to-eat cereal industry is characterized by high concentration, high price-cost margins, large advertising to sales ratios, and numerous introductions of new products. Previous researchers have concluded that the ready-to-eat cereal industry is a classic example of an industry with...

This study examines the relationship between the foreign market characteristics of access to raw materials, capital resources and the necessary channels of distribution, knowledge of local business practices, government intervention, industry price competition and the transfer of up-to-date...

IN 1984, Congress enacted a new law that greatly affected the economicsof the pharmaceutical industry in the United States. It has been characterizedas the most important legislation affecting competition in the pharmaceuticalindustry since the 1962 Kefauver-Harris Amendments to theFood and Drug...