An entrepreneur contracts with a consultant, who is protected by limited liability, to supply information about the state of a project prior to investing in it. For a given level of investment, a good project succeeds with higher probability than a bad one. The entrepreneur makes an upfront...

An entrepreneur contracts with a consultant, who is protected by limited liability, to supply information about the state of a project prior to investing in it. For a given level of investment, a good project succeeds with higher probability than a bad one. The entrepreneur makes an upfront...

A model of an exclusive group or class whose membership is governed by personal contact and interaction is studied. Members of this old-boy network attempt to shield themselves from transacting with opportunistic or incompetent individuals by dealing only infrequently with unproven nonmembers....