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We investigate whether firms learn to manage interfirm alliances as experience accumulates. We use contract-specific experience measures in a data set of over 2000 joint ventures and licensing agreements, and value creation measures derived from the abnormal stock returns surrounding alliance announcements. Learning effects are identified from the effects(More)
" Financial Systems and Institutions in the Third Millenium " conference (Jerusalem), and the " Emerging Markets Finance " conference (London Business School) for very helpful comments and suggestions. Several individuals assisted us with data collection, especially Chanhi Park with the Korean data, Liat Sack with the Israeli data, and Hideaki Miyajima with(More)
For industries ranging from software to pharmaceuticals and entertainment, there is an intense debate about the level of protection for intellectual property that is necessary to ensure innovation. In the case of digital information goods, web-based technologies provide a natural crucible to assess the implications of reduced protection because these(More)
One of the most visible and publicized trends in the movie industry is the escalation in movie advertising expenditures over time. Yet, the returns to movie advertising are poorly understood. The main reason is that disentangling the causal e¤ect of advertising on movie sales is di¢ cult because of the classic endogeneity problem: movies expected to be more(More)
This study models advertising content as a noisy signal on product attributes. Contrary to previous empirical studies that modeled advertising only as part of the consumer's utility function, we formulate advertising also as an element in her information set. This approach yields the following implications. First, in some cases, exposure to advertising(More)
We analyze patent licensing by a patent holder to downstream technology users. We study how the structure and level of royalties depends on the patent's strength, i.e., the probability it would be upheld in court. We examine the social value of determining patent validity before licensing, in terms of deadweight loss (ex post) and innovation incentives (ex(More)
We study how the sequence of nancing of R&D varies according to the ease with which property rights over knowledge can be dened. There are two nanciers: a venture capitalist (VC) and a corporation. The knowledge acquired in costly research becomes embodied in the researcher's human capital , and she may hold up the nancier and walk away with the project to(More)
An influential literature has emerged around the premise that there exists an uneasy tension between (1) bank-firm relationships that promote incentives for firm—specific investments by banks, and (2) competition between banks that can destroy such incentives. This paper studies the industrial organization of the investment banking market in order to shed(More)
A defining characteristic of developing countries is the inadequacy of basic services normally required to support organized economic activity. One way in which the private sector acts to facilitate development is through investments orchestrated by agglomerations of firms called business groups. Such groups dominate the landscape of virtually all(More)