In this paper we analyze the effects of information leakage on the incentives to innovate in firms. We analyze a situation in which an employee in a firm is inspired with a new idea for a product. In a framework in which Intellectual Property Rights on ideas are absent, we analyze the employee’s decision of whether to disclose the idea within the firm or to form a spin-out. We next look at the ...

This paper examines how executives’ compensation structure interacts with firm debt structure, and focuses on how executives’ compensation structure affects firm financing choice between secured debt and unsecured debt. Based on the compensation contracts, executives make corresponding investment and financing decisions for their firms. Therefore, different compensation structures may lead to d...

We address explicitly the issue of risk in the theory of the firm. To that end, we present a model in which the shareholders’ portfolio selection of assets and the decisions of the firm are jointly determined through the market process. The model allows to study the role of markets and prices on the type of risky activities undertaken by a firm and the allocation of random profit among sharehol...

In this paper we present feedback-based information roadmap (FIRM), a multi-query approach for planning under uncertainty which is a belief-space variant of probabilistic roadmap methods. The crucial feature of FIRM is that the costs associated with the edges are independent of each other, and in this sense it is the first method that generates a graph in belief space that preserves the optimal...

Abstract We study pricing decisions in firm-to-firm trade. Using novel detailed transaction-level data from a Danish multinational firm, we uncover considerable price dispersion across countries, customers, and, surprisingly, within the same customer. In fact, find that transaction-specific characteristics are most important factors explaining variation. The extent of customer relationship can ...

We consider a possible game-theoretic foundation of Forchheimer’s model of dominant-firm price leadership based on quantity-setting games with one large firm and many small firms. If the large firm is the exogenously given first mover, we obtain Forchheimer’s model. We also investigate whether the large firm can emerge as a first mover of a timing game.

What is the relationship between niche and performance? We identify two types of niche positions—product niche and process niche—defined by the extent to which a firm offers distinctive products and has distinctive operational processes, respectively. We argue that the effect of each niche on firm performance is contingent upon network embeddedness—the extent to which a firm is involved in a ne...