It is well known that competition can destroy incentives to invest in firm-specific relationships.
This paper examines the adoption of state electricity regulation around the beginning of the 20th century.
U.S. defense policy encourages the use of dual sourcing to reduce government procurement costs, but recent theoretical work raises doubts about the benefits of this policy.
In markets subject to network effects, firms often remove some functions of their original products and sell a functionally-downgraded version at a lower or zero price.
In the absence of commitment to auditing, we study the optimal auditing contract when collusion between an agent and an auditor is possible.