Competition

Is Regulatory Competition a Problem or Irrelevant for Corporate Governance?

This article provides an analysis of why regulatory competition in corporate law has operated, for the most part, successfully in the United States, and...

Competition for Managers and Corporate Governance

Separation between CEO and Chairman of the Board is typically viewed as evidence of good corporate governance. Surprisingly, the literature has failed...

The Stability of Dividends and Wages: Effects of Competitor Inflexibility

We analyze how industry-wide risks are shared between firms' employees and their owners. Focusing on the electricity industry, we study firms which are...

Free Entry in a Cournot Market With Overlapping Ownership

We examine the effects of overlapping ownership in a Cournot oligopoly where existing firms with overlapping ownership decide whether to enter a new...

Economic Development and Relationship-Based Financing

Formal finance involves costly information acquisition about distant entrepreneurs, while relationship-based finance allows financiers to fund a...

Minimizing Costs, Maximizing Sustainability

Do strong incentives to cut costs lead firms to neglect negative externalities? We find that costcutting incentives can be environmentally friendly....

Mergers, Spin-offs, and Employee Incentives

Does the Potential to Merge Reduce Competition?

We study anti-competitive mergers in a dynamic model with noisy collusion. At each instant, firms either privately choose output levels or merge, which...

A Refutation of 'Common Ownership Does Not Have Anti-Competitive Effects in the Airline Industry'

We show that the main claim in Dennis, Gerardi, and Schenone (JF forthcoming) (DGS), namely "that the documented positive correlation between common...

A Theory of Optimal Expropriation, Mergers and Industry Competition

We model a competitive industry where managers choose quantities and costs to maximize a combination of firm profits and benefits from expropriation....

Corporate Governance, Product Market Competition, and Equity Prices

This paper examines the hypothesis that firms in competitive industries should benefit relatively less from good governance, while firms in...

Disintegrating the Regulation of the Business Corporation as a Nexus of Contracts: Regulatory Competition vs. Unification of Law