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its owner unless a verification cost is borne. Contracts in such a setting are said to be consistent if agents submit to … verification and honor claims in accordance with prior agreements. The Pareto optimal consistent contracts which emerge are shown …
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This paper investigates the strategic value of the managerial incentive scheme in affecting firms' incentive in R&D investment and their product market activities. Firstly, we find that in Cournot-quantity competition, owners strategically assign a non-profit-maximization objective to their...
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information about suppliers' types. We show that it never pays the suppliers to commit first. Equilibrium capacity investments and …
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