Working paper icon

Working paper

Product market efficiency: The bright side of myopic, uninformed, and passive external finance.

Abstract:

We show that introducing an external capital market with information asymmetry into a product market model reduces opportunistic substitution of sub-standard goods and encourages producers to concentrate on long-run reputation building. We test this result with a laboratory experiment. We nd that, when the problem of product market opportunism is moderate, i.e., reputation formation equilibria exist when rms raise external funds but not when they rely on internal funds, external nancing resul...

Expand abstract

Actions


Access Document


Files:

Authors


Volume:
2008-FE-12
Series:
Financial Economics Working Papers
Publication date:
2008-01-01
URN:
uuid:c73df4e6-112c-4cec-a0dc-1f8a1f860897
Local pid:
oai:economics.ouls.ox.ac.uk:14095
Language:
English

Terms of use


Metrics


Views and Downloads






If you are the owner of this record, you can report an update to it here: Report update to this record

TO TOP