This paper presents a model in which agents are distinguished by their characteristics, exchange of goods requires communication between firms and their customers, and agents with similar characteristics communicate more effectively. This setup delivers a body of testable impliactions about the...

Deregulation provides a natural experiment for examining how governance adapts to structural changes in the business environment. We investigate the evolution of governance struture -- ownership concentration, compensation policy, and board composition -- in the U.S. airline industry during a 22...