The property-rights approach to the theory of the firm is extended by introducing distorted signals of the parties ….investments. Investment incentives are then given in two ways, by allocating ownership rights and by tying pay to the signal realization … importance of investment matters. Further, it is shown that most of the Grossman-Hart-Moore results are not robust to an …

. This paper analyses the investment incentives of such agents and the role of incumbency advantages in the contest …. Depending on the advantages, an increase in the productivity of the investment can decrease or increase the amount of investment …. The results are applied to autocrats' investment behavior and job specific investment in organizations. …