Direct primary elections were introduced in the United States to limit the power of parties, to favor entry of new candidates, and to foster competition. However, a majority of incumbents faces no competition in their primary. We propose a formal model of primaries to rationalise this fact and...

A firm that must decide whether to retain or terminate a manager can rely on several sources of information to assess managerial ability. When it relies on a performance signal and monitoring, we show that a more informative signal can surprisingly increase the value of monitoring. Then, signal...

Politicians respond to incentives when they decide how to allocate their campaigning time and effort. The literature suggests electoral rules impact politicians' incentives. We argue that the candidate selection process is an equally important source of incentives. We develop a two-stage model...

Politicians respond to incentives when they decide how to allocate their campaigning time and effort. The literature suggests electoral rules impact politicians' incentives. We argue that the candidate selection process is an equally important source of incentives. We develop a two-stage model...

We study the implications of ESG ratings, which are third-party measures of corporate ESG performance, in a principal-agent model with a socially conscious board. The introduction of sufficiently high-quality ESG ratings changes corporate governance arrangements such that the board optimally...

Under closed-list proportional representation, a party's electoral list determines the order in which legislative seats are allocated to candidates. When candidates differ in their ability, parties face a trade-off between competence and incentives. Ranking candidates in decreasing order of...