As provisions on bank capital requirements (e.g., Basel Capital accord) become more and more complicated, monitoring costs increase sharply for both banks and banking supervisory authorities. It is questionable, however, whether capital accords can assess the bank's exposure with sufficient...

Consumer bankruptcy regulation in the United States as well as in many other countries allow consumers to petition for a partial debt discharge. Usually, a debt release is possible when the debtor behaves in the creditors’ best interest and after filing for bankruptcy signs over her entire...

Stage financing provides a real option that is valuable when facing external uncertainty. However, it may also induce investor hold-up, if the property rights on an invention are not sufficiently protected. As a consequence, the entrepreneur may not work hard. Investor opportunism is less likely...

The paper discusses the ex-ante- and ex-post-incentives that result from different insolvency regimes. It concentrates on the problem of how to evaluate and utilise the debtor's seizable assets after bankruptcy proceedings are commenced. This is closely related to the problem of creditor...