We model a firm in an institutional market setting, consisting of a production technology and its governance. The governance consists of a hierarchical firm structure, a cost efficiency parameter,and an internal pay system. The depth of the firm is determined by profit maximization under the...

Mit mehr als 6.000 Unternehmen kann die Trinkwasserversorgung Deutschlands im internationalen Vergleich als höchst fragmentiert angesehen werden. Während die Trinkwasserversorgung in zahlreichen Ländern durch eine ähnliche Fragmentierung gekennzeichnet ist, gibt es aber auch Beispiele...

In this article, we simulate the concentration process within the German dairy sector employing a sectorwide optimization model. As a result, we get cost minimizing structures of the dairy sector for various time horizons depending on varying levels of transportation costs. We show that the...

The paper illustrates a theoretical model of real option value applied to the problem of land development.Making use of the 1998-2001 Kyrgyz Household Budget Survey, we show that when the hypothesis of decreasing return to scale holds, the relation between the threshold value of revenue per...

This paper studies optimal sport league size. League expansion lowers average player quality, reducing fans' utility in inframarginal locations, while fan utility in new locations rises. Welfare analyses of such expansions must compare these two effects. Using a model where fan demand depends on...