This paper studies bid rigging in auctions with bidder preselection. We develop a theoretical model to analyze the optimal behavior of a partial bid-rigging cartel and show how commonly used two-stage auction formats, in which the first stage is used …
This paper provides a theory of strategic innovation project choice by incumbents and start-ups which serves as a foundation for the analysis of acquisition policy. We show that prohibiting acquisitions has a weakly negative innovation effect. We …
We study optimal employment contracts for present-biased employees if firms cannot commit to long-term contracts. Assuming that an employee’s effort increases his chances to obtain a future benefit, we show that individuals who are naive about their …