Consider a setting with two identical fixed-scale projects. Each project requires I/2 investment, and pays back R/2 if it is successful and 0 otherwise. For each project, the risk-neutral entrepreneur can either choose to exert high effort or low effort. The entrepreneur's private benefit from exerting low effort in a project is B/2. The projects are stochastically independent, and the entrepreneur chooses the effort level for each project independently but simultaneously. The entrepreneur holds A (0, I) initial assets and seeks the investment from competitive outside risk-neutral investors. The investors' outside option is normalized to 0. Figure 1 illustrates the payoff structure of one project