Recent years have witnessed an enormous amount of reorganization of the corporate sector in the US and in Europe. This paper examines the role of market competition for this trend in corporate reorganization. We find that at intermediate levels of competition the CEO of the corporation decides...

The question of whether firms may successfully adapt top a change in technology has led to divergent perspectives. I consider this issue in the context of a model of firms in an industry facing a shift from a legacy to a new technology. I allow for firm heterogeneity through entry and gradual...

We consider an entrepreneur that is the sole producer of a cost reducing skill, but the entrepreneur that hires a team to use the skill cannot prevent collusive trade for the innovation-related knowledge between employees and competitors. We show that there are two types of diffusion-avoiding...

In this paper, we highlight the conditions under which organizations initiate changes in two distinct institutional contexts. While the focus within behavioral research has been on aspiration-driven organizational change, the effect of institutional dynamics on the probability of change has been...

We formalize the difference between profit‐maximizing firms, nonprofits, and cooperatives and identify optimal organizational choice in a model of quality provision. Firms provide lowest and nonprofits highest levels of quality. Efficiency, however, depends on the competitive environment, the...