We analyze settlement escrows as an inexpensive method to reduce delay in pretrial bargaining. In a settlement escrow, an agent receives cash settlement offers from the parties to a lawsuit. If the defendant offers more than the plaintiff demands, the court imposes settlement at the midpoint of...

This paper presents a framework for analyzing the costs and benefits of internal versus external capital allocation. The authors focus primarily on comparing an internal capital market with bank lending. While both represent centralized forms of financing, in the former case the financing is...