Many innovative products are designed to satisfy the demand of specific target consumers; thus, the innovators will inevitably compete with each other in the product market. We investigate how a profit-maximizing principal should properly allocate her limited resources to support the innovations of multiple potentially competing innovators. We find that ... 阅读更多

We are interested in understanding how credit crises spread through the real economy. To this end we focus on an understudied aspect of financial crises, the effect of borrowers' defaults on the contracts the bank writes with other borrowers. In a crisis this is one means by which restrictive credit environments pass from borrower to borrower. We provide ... 阅读更多