This paper investigates the welfare effects of private investments prior to trade. A seller of a durable good can privately invest on changing its quality. After the investment, she receives a take-it-or-leave-it offer from a buyer. Both the seller and the buyer value more goods of higher...

Foreign direct investment (FDI) may benefit local firms in the host country through various kinds of spillovers, but it may also raise competition and result in the crowding out of domestic firms. Using detailed firm-level data for the period 2001–2008, this paper examines the aggregate effect...

Technological advances have changed our ability to acquire and save information, with far-reaching implications in legal discovery and evidence. In this paper, we analyze the interrelated effect of legal presumptions and discovery rules in incentivizing the voluntary adoption of private evidence...