We study incentive contracts in asset management business under dynamic actions and relationships between an investor, a partner of an investment company, and a fund manager of the company. The investor cannot perfectly observe the partner and manager’s actions, and similarly, the partner...

We study how crowdfunding, as a source of public information, affects competing venture capital (VC) firms' investment decisions, as well as their profitability. Our economy consists of one startup, one crowdfunding platform, and two VC firms with private prior beliefs about the startup's...

We study how crowdfunding, as a source of public information, affects competing venture capital (VC) firms' investment decisions, as well as their profitability. Our economy consists of one startup, one crowdfunding platform, and two VC firms with private prior beliefs about the startup's...

For thousands of years, the use of alcoholic beverages has been an intrinsic component of human culture. While existing research has documented the correlation between alcohol consumption and various health problems, the correlational evidence appears inconsistent and the causation has not yet...

We analyze how hiring and firing costs as well as firing regulatory delays affect firms' hiring, firing, and relocation policy with a stochastic control model. These frictions are substantial; e.g., the firing delay can be almost a year. In the model hiring and firing costs depend on the firm...

Many innovations today are data-driven, such as self-driving cars. To improve the algorithms of these products, firms make substantial investments in data collection. However, the data is limited for an individual firm, which caps the benefits of the algorithms. Therefore, companies and...

We analyze a bank that operates under the Basel credit and market risk requirements, and that maximizes its value through recapitalizations, dividends, and liquid asset investments. According to our model, the market risk requirement may postpone recapitalization and this way increase the bank's...