Showing 1 - 10 of 281
This paper studies management when the principal has different degrees of commitment power. In a model in which both the principal and agents are symmetrically uncertain about the agents' innate abilities, implicit incentives arise when the principal is not able to commit herself to long-term...
Persistent link: https://www.econbiz.de/10005792112
Why do firms delegate job design decisions to workers, and what are the implications of such delegation? We develop a private-information based theory of delegation, where delegation enables high-ability workers to signal their ability by choosing difficult tasks. Such signalling provides a more...
Persistent link: https://www.econbiz.de/10005123930
We study how firm characteristics evolve from early business plan, to initial public offering, to public company for 49 venture capital financed companies. The average time elapsed is almost six years. We describe the financial performance, business idea, point(s) of differentiation, non-human...
Persistent link: https://www.econbiz.de/10005792538
This Paper presents a new approach to the theory of the firm by identifying factor complementarities as central to the determination of the firm’s boundaries. The factor complementarities may take a variety of forms: technological and informational complementarities, as well as economies of...
Persistent link: https://www.econbiz.de/10005136409
The inheritance of contemporary financial economics invites us to consider financial stability as integral to a liberal market setting. The crisis however demonstrated that financial markets may prove highly dysfunctional in the absence of adequate mechanisms of regulation and governance. This...
Persistent link: https://www.econbiz.de/10008784732
We analyze optimal contracts and optimal matching patterns in a simple model of partnership where there is a double-sided moral hazard problem and potential partners differ in their productivity in two tasks. It is possible for one individual to accomplish both tasks (sole production) and there...
Persistent link: https://www.econbiz.de/10008861907
We augment efficiency-based theories of ownership by including influence costs. Our principal conclusion is that the prospect of organizational decline and layoffs creates additional influence costs in multi-unit organizations that would be absent if there were no prospect of layoffs and would...
Persistent link: https://www.econbiz.de/10005114369
Two types of intrinsically motivated workers are considered: "good" workers care about the mission of an organization, whereas "bad" workers derive pleasure from destructive behavior. While missionoriented organizations take advantage of the intrinsic motivation of good workers, they are more...
Persistent link: https://www.econbiz.de/10011083802
We study how career concerns affect the dynamics of incentives in a multi-period contract, when the agent’s productivity is a stochastic function of his past productivity and investment. We show that incentives are stronger and performance is higher when the contract approaches its expiry...
Persistent link: https://www.econbiz.de/10011083903
This Paper surveys the theoretical literature on the effect of soft budget constraints (SBC) on economies in transition from centralization to capitalism; it also reviews our understanding of SBC in general. It focuses on the conception of the SBC syndrome as a commitment problem. We show that...
Persistent link: https://www.econbiz.de/10005667038