Papers by Stephanie Rosenkranz
We analyze the effect of liquidated damage rules in exclusive contracts that are negotiated in a ... more We analyze the effect of liquidated damage rules in exclusive contracts that are negotiated in a sequential bargaining process between one seller and two buyers with endogenous outside options. We show that assumptions on the distribution of bargaining power influence the size of the payment of damages and determine which contractual party benefits from including liquidated damage rules. Furthermore, we show that the effect of the payment of damages on the efficiency of the consummated deals depends on the possibility to sign more than one contract. Only if this is not possible, damage rules may prevent the breaking and entering of contracts and thus lead to inefficient deals in the market of corporate control, or allow for 'naked' exclusion in the context of supplier contracts with externalities.
Vertikale Unternehmenskooperationen
Book Review of “Bargaining Theory with Applications” (Muthoo, 1999)
Joint Ownership And Incomplete Contracts: The Case Of Perfectly Substitutable Investments
Theoretical results from previous work, presented in Kool, Middeldorp and Rosenkranz (2007), sugg... more Theoretical results from previous work, presented in Kool, Middeldorp and Rosenkranz (2007), suggest that central bank communication crowds out private information acquisition and that this effect can lead to a deterioration of the ability of financial markets to predict future policy interest rates. We examine this result in an experimental asset market that closely follows the theoretical model. Crowding out of information acquisition takes place and, where this crowding out is most rapid, there is deterioration of the market's predictive ability. This supports the theoretical result that central bank communication can actually make it more difficult for financial markets to predict future policy rates.
Information acquisition in an experimental asset market
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Papers by Stephanie Rosenkranz