The authors thank the Organization Science senior editor Ray Reagans, the anonymous reviewers, Amir Goldberg, Greta Hsu, Wes Longhofer, Susan Olzak, Chris Rider, Peter Roberts, Anand Swaminathan, Peter Thompson, seminar participants at Cambridge University, Durham University, Emory University, EPFL Lausanne, London Business School, Mannheim University, New York University, Northwestern University, Princeton University, Stanford University, University of Toronto, and the Nagymaros Workshop for helpful comments. The authors are grateful to our informants for their time. They also thank Severine Piot, Diane Valahu, and Abdul Zaheer for research assistance and Hayagreeva Rao for his contribution to earlier stages of the project that led to this paper. This research was supported by Emory University and the Stanford Graduate School of Business. The authors remain responsible for errors and omissions.