We study dynamic bargaining with asymmetric information and interdependent values. We show that as the gap between the cost and value of the weakest type shrinks to zero, the continuous time limit of equilibria changes dramatically from rare bursts of trade with long periods of inactivity to a smooth screening down the demand function, independent of the distribution. If we interpret the model ...

The sea route between Denmark and Sweden to the Baltic Sea was provided with lighthouses as early 1560s, much later two at southern tip of Norway were added. Like other Norwegian these built operated by private individuals privileges giving them right levy duties on shipping. Ronald Coase has described same phenomenon in England challenging view that collective goods could not be enterprise. Th...

This paper argues that the existence of knowledge-intensive firms pose puzzelments for the contractual theories of the firm. For example, in knowledge-intensive firms physical assets are widely absent, the nature of employment relations and assetownership are much less clear compared to industrial firms. Although knowledge-intensive firms account for a growing share in wealth-creation and emplo...