This article develops a theory of contracting among founders of a new firm. It asks at what stage founders agree to commit to each other, how they structure optimal founder contracts, and how this affects team formation, ownership, incentives, and performance. The article derives a trade-off between upfront contracting, which can result in teams with ineffective founders, versus delayed co…

When individuals trade with strangers, there is a temptation to renege on agreements. If repeated interaction or exogenous enforcement is unavailable, societies often solve this problem via institutions that rely on group, rather than individual, reputation. Groups can employ two mechanisms to uphold reputation that are unavailable to individuals: information sharing and in-group punishment. …

Using a newly assembled dataset, we empirically investigate the effects of subcontracting on procurement auction prices in Italy. In this setting, the prequalifications required for firms aiming to bid on public contracts determine the firms� different subcontracting formats. We find that fully qualified firms in a position to choose whether to subcontract generally offer lower prices t…

How does a court�s policy-making authority shape the nature of judicial behavior? We argue that judicial systems that limit policy-making authority also discourage the politicization of courts, encouraging judges to think narrowly about the interests of litigating parties. In contrast, granting a court high policy-making authority�affecting potentially thousands of cases and othe…

Corruption is usually depicted in one of two ways: as stemming from a lack of government accountability, or from a lack of capacity. Neither depiction predicts that the structure of institutions meant to control corruption should vary across autocratic regimes. If corruption results from moral hazard between politicians and citizens, then all unaccountable governments should eschew anticorr…

We introduce a new method to measure the ideology of state Supreme Court justices using campaign finance records. In addition to recovering ideal point estimates for both incumbent and challenger candidates in judicial elections, the method�s unified estimation framework recovers judicial ideal points in a common ideological space with a diverse set of candidates for state and federal …

This paper explores possible biases in open peer-review using data from the English superior courts. Exploiting the random timing of on-the-job interaction between reviewers and reviewees, we find evidence that reviewers are reluctant to reverse the judgments of reviewees with whom they are about to interact, and that this effect is stronger when reviewer and reviewee share the same rank. T…

This paper outlines the assumptions on the nature of financial markets and investments that condition the mainstream theory of finance. Explanatory problems of financial economics are associated with the assumptions on financial reality andthe respective method of inquiry, one routed in the practices of (some branches of) natural sciences. In an alternative conception of finance, financial mark…

One of the more debated interpretations of the economic crisis that started in 2007�08 is based on the �Taylor rule� equation, namely the idea that over the period 2002�05 the Fed has implemented a low-interest policy that has led to the housing bubble and finally to the �Great Recession�. This paper shows that the Taylor rule equation not only rests on the so-…

Tahun Terbit

2008

ISBN/ISSN

978-979-1336-27-7

Deskripsi Fisik

106p ; 23cm

No. Panggil

650.1 IND b