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In this paper, we discuss a scenario in capital structure where two divisional managers compete for capital from a firm for their projects in a perfect information setting. Each project’s profit is an inverted u-shape function with respect to capital. We consider verifiable profits and study...
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conflict. Barring indivisibilities or commitment problems, the literature finds that war can only occur between rational … whether B knows -- uncertainty about uncertainty. To ensure peace, then, states need not only know each other's attributes …
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