Luís Cabral, from NYU, will present his research work. 

Asset Specificity and Inefficient Bargaining: Theory and Evidence from Television Shows 

Evidence from TV shows suggests that failed contract negotiations may lead to inefficient show cancellation. We propose a theoretical model of bargaining with asymmetric information that allows for this possibility. We derive various testable implications, all of which are borne by the data. We show that an increase in asset specificity of the actor-show match implies an increase in the probability of an agreement under efficient bargaining but a decrease under asymmetric information. We use this result as an identification strategy to place a 3% lower bound on the probability that a TV show is cancelled even though it would be efficient for it to continue.