This paper gives conditions under which vertical separation is chosen by some upstream firms, while vertical integration is chosen by others in the equilibrium of a symmetric model. A vertically separating firm trades off fixed contracting costs against the strategic benefit of writing a...

The International Accounting Standards Committee issued the the International Accounting Standard 11, Construction Contracts. The objective of IAS 11 is to prescribe the accounting treatment of revenue and costs associated with construction contracts. This Standard uses the recognition criteria...

This paper gives conditions under which vertical separation is chosen by some upstream firms, while vertical integration is chosen by others in the equilibrium of a symmetric model. A vertically separating firm trades off fixed contracting costs against the strategic benefit of writing a...

Purpose – Delays and cost overruns are evidently frequent problems in the construction industries of many developed and developing countries. The purpose of this paper is to assess factors leading to time overruns (delays) and cost overruns in construction projects in the Gaza Strip. Since...

This paper explores the consequences and implications of the dual role of promotion in an environment where a firm must simultaneously achieve two distinct goals - assignment and incentive provision - via the strategic use of promotions. We argue that the efficient promotion rule is generally...

This paper studies the performance of promotion tournaments with heterogeneous participants in two dimensions: incentive provision and selection. Our theoretical analysis reveals a trade-off for the tournament designer between the two goals: While total effort is maximized if less heterogeneous...

We characterise optimal contracts in a dynamic principal-agent model of joint production in which project opportunities are heterogenous, utility from these projects is non-transferable and the agent has the option to quit the relationship at any time. In order to demand the production of...

This paper shows that the incentive effects of heterogeneity may be positive rather than negative in dynamic contests with multiple stages. In particular, the well-studied adverse effects of heterogeneity in static interactions are compensated by positive continuation-value and selection...