optimal compensation contract induces investment allocations that are more aggressive than the first-best allocation …

competitiveness and sufficiently separates individuals who choose different effort levels, the market allocation is Pareto superior to … a social planner’s allocation. We construct a specific market game that naturally generates robust equilibria with these …

We develop a theory of firm scope in which integrating two firms into one facilitates the allocation of resources, but …. This effect exists even though with perfect information, centralized resource allocation would improve the managers …