This study develops a general equilibrium model within which self revelation of ability - that is not accompanied by any signaling - is compatible with arrival at rational expectations equilibriums (REE). In the model, economic agents either are 'confident', 'overconfident', or 'under-confident'...

Suppose entrepreneurs within venture capital markets accept 'lower than reservation prices' from reputable venture capitalists (VCs). This study shows negative relations between project prices and VCs' reputation ('reputation price discounts') are best explained by presence of an ability measure...

Conventional implementations of the Bonacich (1987) status construct are derived from economic agents' `information reach' and `frequency of repeated partnerships'. This study finds status that derives from new entrant venture capitalists' (VCs') information reach and frequency of repeated...

This paper provides evidence that venture capitalists' (VCs') market reputation consists of two components: an expected component derived from "expectations about VCs' ability to deliver relatively safe ventures to market" and an unexpected component derived from "unanticipated improvements in...

Absent superior performance with respect to 'Portfolio Innovation Focus' (unexpected innovation), this study finds 'less experienced' ('competing') VCs, which only coinvest with other less experienced VCs, become less reputable than alternate less experienced ('non-competing') VCs who coinvest...

This study develops a theoretical model that parameterizes cross-sectional differences in opportunity set risk within venture capital markets. The theoretical model shows clusters of venture capital activity can be induced by non-monotonic relations that obtain between search costs for projects...

In this paper, we find evidence of reversals in relative exit performance between the "short" and "long-run" in the VC market, with the short-run defined to be the first five years of business, and the long-run, the sixth year of business onwards. Using proxies for the risk of venture capital...

I find venture capitalists' (VCs') information production activities help decrease uncertainty about the valuations of new innovations within public equity markets, resulting in price convergence within the cross-section of Initial Public Offerings (IPOs) that are backed by different classes of...