When should principals dealing with a common agent share their individual performance measures about the agent's unobservable effort for producing a public good? In a model with two principals who offer linear incentive schemes, we show that information sharing always increases total expected...

In this paper, we analyze the equilibrium incentive schemes offered to an agent by two principals who can only observe correlated noisy signals of the one-dimensional action taken by the agent. We look at both cases when the two principals can or cannot cooperate in setting the terms of their...

In many cases, politicians and government officials are forbidden by law to accept monetary donations from interest groups or other outside parties as these monetary transfers are thought to cause social inefficiencies. The empirical literature supports this view as it finds a negative link...

Realized kernels use high-frequency data to estimate daily volatility of individual stock prices. They can be applied to either trade or quote data. Here we provide the details of how we suggest implementing them in practice. We compare the estimates based on trade and quote data for the same...

We study the effects of market structure on entry using data from the UK fast food (counter-service burger)industry over the years 1991-1995. Over this period, the market can be characterized as a duopoly. We find that market structure matters greatly: for both firms, rival presence increases...

Whether or not banks are engaged in ex ante monitoring of customers may have important consequences for the whole economy. We approach this question via a model in which banks can invest in either information acquisition or market power (product differentiation). The two alternatives generate...

Essentially all governments of developed, and those of several developing countries resort to policies that seek to increase private R&D investments. There are good theoretical arguments why this should be so. Despite a large literature on the economics of R&D in general and on the effects of...

Essentially all governments of developed, and those of several developing countries resort to policies that seek to increase private R&D investments. There are good theoretical arguments why this should be so. Despite a large literature on the economics of R&D in general and on the effects of...

Essentially all governments of developed, and those of several developing countries resort to policies that seek to increase private R&D investments. There are good theoretical arguments why this should be so. Despite a large literature on the economics of R&D in general and on the effects of...

An estimator of the ex-post covariation of log-prices under asynchronicity and microstructure noise is proposed. It uses the Cholesky factorization on the correlation matrix in order to exploit the heterogeneity in trading intensity to estimate the different parameters sequentially with as many...