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We study information disclosure and diversification in contests with technological uncertainty, where agents can pursue … different technologies to compete in the contest, but there is uncertainty regarding which will be implemented ex post. The …; and (iii) the extent of technological uncertainty. Our results can be applied to a variety of settings such as innovation …
Persistent link: https://www.econbiz.de/10012872186
This paper proposes an explanation as to why some mergers fail, based on the interaction between the pre-merger … evidence. Our setup is a global game (integration process) in which players decide whether to participate (merger decision). We …
Persistent link: https://www.econbiz.de/10014064976
Game-theoretic models of marketing channels typically rely on simplifying assumptions that, from a behavioral perspective, often appear naïve. However, behavioral researchers have produced such an abundance of behavioral regularities that they are impossible to incorporate into game-theoretic...
Persistent link: https://www.econbiz.de/10012857645
This paper characterizes equilibrium outcomes of extensive form games with incomplete information in which players can sign renegotiable contracts with third-parties. Our aim is to understand the extent to which third-party contracts can be used as commitment devices when it is impossible to...
Persistent link: https://www.econbiz.de/10010222351
In economic contests or tournaments where monitoring of the actions taken by contestants is imperfect competition is likely to drive not just work effort but other choices at the workers' discretion that increase the probability of winning. For example, when workers compete for promotion,...
Persistent link: https://www.econbiz.de/10014061208
The article examines the firm's choice of incentives when workers face additional incentives (external incentives) to those provided by the firm, such as building reputation that improves the workers' prospects with other employers, or satisfaction from working well. Surprisingly, the firm might...
Persistent link: https://www.econbiz.de/10014025991
This paper studies the effectiveness of lifetime employment as a strategic commitment in a three-stage Cournot model with two identical labour-managed income-per-worker-maximizing firms. In the first stage, one labour-managed firm is allowed to offer lifetime employment. In the second stage, the...
Persistent link: https://www.econbiz.de/10013078300
We study relational contracting and renegotiation in environments with external enforcement of long-term contractual arrangements. An external, long-term contract governs the stage games the contracting parties will play in the future (depending on verifiable stage-game outcomes) until they...
Persistent link: https://www.econbiz.de/10014033653
This paper examines the phenomenon of management-initiated, court-supervised reorganization of companies in U.S. bankruptcy court. The proposed in-court persuasion mechanism reconciles excessive reorganizations of non-viable companies (and subsequent repeat failures) with management-initiated...
Persistent link: https://www.econbiz.de/10011779720
This paper analyses the formation of international environmental agreements (IEAs) under uncertainty, focusing on the … of IEA formation when countries are risk neutral and another that explores the implications of uncertainty and risk …
Persistent link: https://www.econbiz.de/10010234539