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Interdependent pricing and markup behavior : an empirical analysis of GM, Ford and Chrysler

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Show simple item record Berndt, Ernst R. en_US Friedlaender, Ann Fetter en_US Wang Chiang, Judy S. en_US 2009-12-15T23:53:48Z 2009-12-15T23:53:48Z 1990 en_US
dc.identifier 90-016 en_US
dc.description.abstract In this paper we show how to adapt the traditional contingent claims valuation techniques to correctly value the firm and its liabilities in the presence of agency costs. This enables us to measure the significance of the agency costs as a function of the quantity of debt outstanding and as a function of the design of the debt contract: with this we can determine the relative benefits of alternative contract design. Our work makes a contribution to the recent database about how much debt a corporation can prudently assume. It is possible to measure the agency advantages of the new debt instruments for a given firm, and therefore to determine for which firms the advantages are significant and for which firms they are not. en_US
dc.description.sponsorship Supported by the National Science Foundation and the MIT Center for Energy Policy Research. en_US
dc.format.extent 55 p en_US
dc.publisher MIT Center for Energy and Environmental Policy Research en_US
dc.relation.ispartofseries Working paper (Massachusetts Institute of Technology. Center for Energy Policy Research) ; MIT-CEPR 90-016. en_US
dc.title Interdependent pricing and markup behavior : an empirical analysis of GM, Ford and Chrysler en_US
dc.type Working Paper en_US
dc.identifier.oclc 28596097 en_US

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