Elements of strategic negotiation under uncertainty: The case of venture capitalists
Author(s) -
Edwin H. Neave,
Lewis D. Johnson
Publication year - 2009
Publication title -
corporate ownership and control
Language(s) - English
Resource type - Journals
eISSN - 1810-0368
pISSN - 1727-9232
DOI - 10.22495/cocv6i3c4p2
Subject(s) - negotiation , venture capital , business , process (computing) , social venture capital , industrial organization , complete information , finance , economics , microeconomics , computer science , political science , law , operating system
This paper uses the theory of transactions economics to model the process whereby venture capitalists and financiers negotiate the terms of financing. We show that the process has both static and dynamic elements, and involves incomplete information in a world of uncertainty. Central to the arrangement is the alignment of borrower attributes and lender capabilities.
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