I study the effect of timing of negotiation on the resolution of the hold-up problem. I show that the investor can invest optimally, if the non-investor can commit to initiate negotiation in a specific time period. This way I demonstrate that contracting parties can use negotiation timing...

I use the standard screening model to study the relationship between bribes and red tape. I argue that bribe-taking bureaucrats extract bribes by exploiting differences in firms' marginal costs of red tape and offer a menu of bribes and paperwork processing times, where a larger bribe is...

Bribe-extorting bureaucrats initiate disputes to extract bribes that firms are not willing to pay. Bureaucrats screen out firms with resources to pay bribes by offering a menu of bribes and paperwork processing delays during disputes. Although firms that face disputes are more profitable as a...