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Business Groups as Hierarchies of Firms: Determinants of Vertical Integration and Performance

Altomonte, Carlo; Rungi, Armando - Fondazione ENI Enrico Mattei (FEEM) - 2013

assets are a complementary input in the production processes. …

Persistent link: https://www.econbiz.de/10010640989

Vertical Integration and Investor Protection in Developing Countries

Macchiavello, Rocco - Fondazione ENI Enrico Mattei (FEEM) - 2009

The industrial organization of developing countries is characterized by the pervasive use of subcontracting arrangements among small, financially constrained firms. This paper asks whether vertical integration relaxes those financial constraints. It shows that vertical integration trades off the...

Persistent link: https://www.econbiz.de/10008502126

The Circulation of Ideas in Firms and Markets

Hellman, Thomas; Perotti, Enrico - Fondazione ENI Enrico Mattei (FEEM) - 2010

Novel early stage ideas face uncertainty on the expertise needed to elaborate them, which creates a need to circulate them widely to find a match. Yet as information is not excludable, shared ideas may be stolen, reducing incentives to innovate. Still, in idea-rich environments inventors may...

Persistent link: https://www.econbiz.de/10008467316

Merger Performance under Uncertain Efficiency Gains

Xue, Licun; Amir, Rabah; Diamantoudi, Effrosyni - Fondazione ENI Enrico Mattei (FEEM) - 2004

In view of the uncertainty over the ability of merging firms to achieve efficiency gains, we model the post-merger situation as a Cournot oligopoly wherein the outsiders face uncertainty about the merged entity’s final cost. At the Bayesian equilibrium, a bilateral merger is profitable...

Persistent link: https://www.econbiz.de/10005423211

The Role of Agglomeration and Technology in Shaping Firm Strategy and Organization

Cainelli, Giulio; Iacobucci, Donato - Fondazione ENI Enrico Mattei (FEEM) - 2006

Over the last few years a growing number of contributions have shown that the presence of business groups, i.e. sets of firms legally distinct but belonging to the same owner(s), is significant. From a theoretical point of view, this presence poses the question of whether the group or the single...

Persistent link: https://www.econbiz.de/10005570282

Bidding for Incompete Contracts

Bajari, Patrick; Houghton, Stephanie; Tadelis, Steven - Fondazione ENI Enrico Mattei (FEEM) - 2004

When procurement contracts are incomplete, they are frequently changed after the contract is awarded to the lowest bidder. This results in a final cost that differs from the initial price, and may involve significant transaction costs due to renegotiation. We propose a stylized model of bidding...

Persistent link: https://www.econbiz.de/10005570367

Ownership Concentration, Monitoring and Optimal Board Structure

Graziano, Clara; Luporini, Annalisa - Fondazione ENI Enrico Mattei (FEEM) - 2005

The paper analyzes the optimal structure of board of directors in a firm with ownership concentrated in the hands of a large shareholder who sits on the board. We focus our attention on the choice between one-tier board who performs all tasks and two-tier board where the management board is in...

Persistent link: https://www.econbiz.de/10005570374

Optimal Information Transmission in Organizations: Search and Congestion

Cabrales, Antonio; Arenas, Àlex; Díaz-Guilera, Albert; … - Fondazione ENI Enrico Mattei (FEEM) - 2004

We propose a stylized model of a problem-solving organization whose internal communication structure is given by a fixed network. Problems arrive randomly anywhere in this network and must find their way to their respective “specialized solvers” by relying on local information alone. The...

Persistent link: https://www.econbiz.de/10004990060

Marginal Cost Versus Average Cost Pricing with Climatic Shocks in Senegal: A Dynamic Computable General Equilibrium Model Applied to Water

Briand, Anne - Fondazione ENI Enrico Mattei (FEEM) - 2006

(demographic growth). The results show that marginal cost water pricing (with a subsidy ensuring the survival of the water … production sector) makes it possible in the long term to absorb the shock of the resource shortage, GDP, investment and welfare …, the current policy of average cost pricing of water leads the long-term economy in a recession with an agricultural …

Persistent link: https://www.econbiz.de/10005570250

Structural Change, Environment and Well-being: Interactions Between Production and Consumption Choices of the Rich and the Poor in Developing Countries

Antoci, Angelo; Russu, Paolo; Ticci, Elisa - Fondazione ENI Enrico Mattei (FEEM) - 2008

depress wages; c) production of the modern sector managed by the rich is less affected by depletion of natural resources …

Persistent link: https://www.econbiz.de/10005230914