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Publications
Publications
  • November 2013
  • Article
  • Journal of Financial Economics

The Performance of Corporate Alliances: Evidence from Oil and Gas Drilling in the Gulf of Mexico

By: John Beshears
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Abstract

I use data on oil and gas drilling in the Gulf of Mexico to measure how a corporate alliance—a group of firms that jointly develops an offshore tract—performs relative to a solo firm. I employ a regression discontinuity strategy based on bids in first-price sealed-bid auctions for the rights to develop leases. By focusing on leases where one organizational form narrowly outbids the other, I measure drilling outcomes while controlling for the endogenous matching of projects and organizational forms. Solo firm leases are less profitable than alliance leases because alliance members combine their information and expertise.

Keywords

Organizational Form; Corporate Alliances; Oil And Gas Production; Lease Auctions; Regression Discontinuity; Alliances; Organizational Structure; Auctions; Performance; Energy Sources; Leasing; Energy Industry

Citation

Beshears, John. "The Performance of Corporate Alliances: Evidence from Oil and Gas Drilling in the Gulf of Mexico." Journal of Financial Economics 110, no. 2 (November 2013): 324–346.
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About The Author

John Beshears

Negotiation, Organizations & Markets
→More Publications

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More from the Author
  • Optimal Illiquidity By: John Beshears, James J. Choi, Christopher Clayton, Christopher Harris, David Laibson and Brigitte C. Madrian
  • Automatic Enrollment with a 12% Default Contribution Rate By: John Beshears, Ruofei Guo, David Laibson, Brigitte C. Madrian and James J. Choi
  • Smaller than We Thought? The Effect of Automatic Savings Policies By: James J. Choi, David Laibson, Jordan Cammarota, Richard Lombardo and John Beshears
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