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This paper analyzes innovation races in a moral hazard setting. I develop a model where two competing entrepreneurs …
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, innovation, and economic growth. The chapters in part I analyze data on the levels of venture capital fundraising in Europe …
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We consider a two-stage principal-agent model with limited liability in which a CEO is employed as agent to gather information about suitable merger targets and to manage the merged corporation in case of an acquisition. Our results show that the CEO systematically recommends targets with low...
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