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Electronic Markets, Search Costs and Firm Boundaries

Sankaranarayanan, Ramesh; Sundararajan, Arun - Econometric Society - 2004

We study how firm boundaries are affected by the reduction in search costs when business-to-business electronic markets are adopted. Our paper analyzes a multi-tier industry in which upstream parts suppliers incur procurement search costs, and downstream manufacturers incur incentive contracting...

Persistent link: https://www.econbiz.de/10005063689

Exit Option in Hierarchical Agency

Kim, Doyoung; Lawarree, Jacques; Shin, Dongsoo - Econometric Society - 2004

study a hierarchy with a principal, a productive supervisor and an agent. Communication is imperfect in that only the …

Persistent link: https://www.econbiz.de/10005129818

The Mushroom Treatment: Information Suppression and Misrepresentation in Organizations

Croson, David C.; Weber, Thomas A. - Econometric Society - 2004

The ââ‚¬Å“mushroom treatmentââ‚¬? is a common metaphor for the practice of ââ‚¬Å“keeping employees in the dark and feeding them a steady diet of bull manure.ââ‚¬? We develop a model of this practice of information suppression and misrepresentation within organizations,...

Persistent link: https://www.econbiz.de/10005130154

Changing Customer Scope of Suppliers in Korean Automobile Industry after Currency Crisis

Bok, Deuk-Kyu - Econometric Society - 2004

This paper analyzes the changes in the transaction structure of auto parts makers in Koreaâ€™s automobile industry since the currency crisis of 1997. Examining the auto parts transaction structure during the years from 1996 to 1999, it turns out that the number of assembly companies working...

Persistent link: https://www.econbiz.de/10005130255

The Boundaries of the Firms as Information Barriers

Chou, Eric - Econometric Society - 2004

Most existing theories of the firms define a firm as a collection of physical assets, and hence can not explain the firm from a human-asset perspective, which is of particular importance for understanding human-capital intensive firms. To fill in the gap, this paper proposes an alternative...

Persistent link: https://www.econbiz.de/10005342240

Measuring Economies of Vertical Integration in Network

Reynaud, Arnaud; Garcia, Serge; Moreaux, Michel - Econometric Society - 2004

the vertical economies resulting from market imperfections. To illustrate our analyze, we use consistent panel data …

Persistent link: https://www.econbiz.de/10005342268

Full vs. Light-Handed Regulation of a Network Industry

Negrin, Joyce Sadka. Jose Luis - Econometric Society - 2004

the upstream market, to an entrant. Both firms produce a final service and compete in the downstream market. The standard … prices are set by quantity competition in the downstream market. In this setup, we find that a regulator seeking to maximize … total market surplus will set an access price that subsidizes the entrant, so that entrants that are less efficient than the …

Persistent link: https://www.econbiz.de/10005328897

Efficient Delegation by an Informed Principal

Gresik, Thomas A.; Bond, Eric W. - Econometric Society - 2004

Consider the case of a firm with private valuation information bargaining with a supplier over the price and quantity of a good. If the firm and the supplier bargain directly, the bargaining outcome may not yield a first-best outcome due to the presence of information rents. The question we...

Persistent link: https://www.econbiz.de/10005328937

Coordination, Specialization and Incentives: An Equilibrium Model of Firm Boundaries

Mathewson, Frank; Horstmann, Ignatius J. - Econometric Society - 2004

that we provide is that the degree of specialization is not just limited by the extent of the market -- Stigler …

Persistent link: https://www.econbiz.de/10005328943

Tunneling and Propping: A Justification for Pyramidal Ownership

Riyanto, Yohanes E.; Toolsema, Linda A. - Econometric Society - 2004

This paper presents a formal model of tunneling and propping in a pyramidal ownership structure. Tunneling refers to controlling shareholders shifting funds from one firm to another in the same pyramid. Propping is tunneling that is done to save the receiving firm from bankruptcy. We compare the...

Persistent link: https://www.econbiz.de/10005086419