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The relevance of sunk costs in decision making is one of the major sources of disagreement between neoclassical economists and behavioral economists. We test the importance of sunk costs by examining the role of a player's draft position on his playing time in the National Basketball...
Persistent link: https://www.econbiz.de/10010721625
influence the demand for outsourcing. We show that outsourcing becomes more beneficial to the firm when technology is changing … expensive than outsourcing. The model therefore provides an explanation for the recent increases in outsourcing that have taken … model, namely, that all other things equal, the demand for outsourcing increases with the probability of technological …
Persistent link: https://www.econbiz.de/10005703231
We present a dynamic model where the probability of outsourcing production is increasing in the firm’s expectation of … outsourcing. No prior study has been able to provide such causal evidence. Our results are robust to the inclusion of detailed …
Persistent link: https://www.econbiz.de/10008496996
This paper examines the relationship between outsourcing and various aspects of employee well-being by devoting special … employees' job satisfaction is reduced. However, the relationship between outsourcing and employee well-being is not entirely …
Persistent link: https://www.econbiz.de/10010884090
organizational decision is driven by two countervailing effects: the ownership rights effect favors outsourcing, while the "indirect … outsourcing of the "less important" supplier is chosen in equilibrium. We also consider an open economy setup where the producer …
Persistent link: https://www.econbiz.de/10011279357
We evaluate the effects of outsourcing and wage solidarity on wage formation and equilibrium unemployment in a … heterogeneous labour market, where wages are determined by a monopoly labour union. We find that outsourcing promotes the wage … magnify, and not dampen, this tendency. Further, higher outsourcing will increase equilibrium unemployment among the high …
Persistent link: https://www.econbiz.de/10005233784
Most contracts that individuals enter into are not written from scratch; rather, they depend upon forms and terms that have been successful in the past. In this paper, we study the structure of form construction contracts published by the American Institute of Architects (AIA). We show that...
Persistent link: https://www.econbiz.de/10005233914
We develop a theory of a firm in an environment with incomplete contracts. The firm’s headquarter decides on the complexity, the organization, and the global scale of its production process. Specifically, it decides: i) on the mass of symmetric intermediate inputs that are part of the value...
Persistent link: https://www.econbiz.de/10008693834
-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of tax progression by …
Persistent link: https://www.econbiz.de/10008693839
outsourcing activities, the increased flow of direct foreign investment and its heterogeneous regional distribution, the increased …
Persistent link: https://www.econbiz.de/10005703160