• Publications
  • Influence
Holdups, Standard Breach Remedies, and Optimal Investment
We consider a bilateral trading problem in which one or both parties makes relationship-specific investments before trade. Without adequate contractual protection, the prospect of later holdupsExpand
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Strict Monotonicity in Comparative Statics
This note provides sufficient conditions to draw strict monotone comparative statics conclusions in optimization problems. These results extend the lattice-theoretic results of Milgrom and ShannonExpand
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Cadillac Contracts and Up-Front Payments: Efficient Investment Under Expectation Damages
  • A. Edlin
  • Economics, Business
  • 1 November 1994
This paper shows that up-front payments can play a crucial role in providing efficient investment incentives when contracts are incomplete. They can eliminate the overinvestment effect identified byExpand
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Contract Renegotiation and Options in Agency Problems
This article discusses the ability of an agent and a principal to achieve the first-best outcome when the agent invests in an asset that has greater value if owned by the principal than by the agent.Expand
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Exclusion or Efficient Pricing - The Big Deal Bundling of Academic Journals
Prices of academic journals have climbed enormously in the past two decades. This article explains the substantial barriers to entry that established journals enjoy. It points out that the Big DealExpand
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Do Guaranteed-Low-Price Policies Guarantee High Prices, and Can Antitrust Rise to the Challenge?
Price-matching policies can be highly anticompetitive. They allow firms to raise their prices above competitive levels by discriminating in price between informed and uninformed customers. TheExpand
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The Accident Externality from Driving
We estimate auto accident externalities (more specifically insurance externalities) using panel data on state‐average insurance premiums and loss costs. Externalities appear to be substantial inExpand
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Specific investment under negotiated transfer pricing: An efficiency result
In our model of negotiated transfer pricing, divisional managers can make specific investments that enhance the value of intrafirm trade. However, these investments are irreversible and must be madeExpand
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The Actavis Inference: Theory and Practice
In FTC v. Actavis, Inc., the Supreme Court considered "reverse payment" settlements of patent infringement litigation. In such a settlement, a patentee pays the alleged infringer to settle, and theExpand
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Voting as a Rational Choice: Why and How People Vote to Improve the Well-Being of Others
For voters with "social" preferences, the expected utility of voting is approximately independent of the size of the electorate, suggesting that rational voter turnouts can be substantial even inExpand
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