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Anti-Competitive Financial Contracting: the Design of Financial Claims

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  • Cestone, G.
  • White, L.

Abstract

In this paper we show that the "Coase problem" of the private oversupply of inputs applies equally to investors supplying capital to firms. Investors would like to commit to supplying only the monopoly amount of capital to an industry, but ex-post may be tempted to fund a second firm, devaluing the investment of the first entrepreneur.

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Bibliographic Info

Paper provided by Toulouse - GREMAQ in its series Papers with number 99.525.

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Length: 30 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:gremaq:99.525

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Postal: GREMAQ, Universite de Toulouse I Place Anatole France 31042 - Toulouse CEDEX France.
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Web page: http://www-gremaq.univ-tlse1.fr/
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Keywords: CAPITAL ; COMPETITION ; BUSINESS FINANCING;

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References

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