The paper analyzes the choice of organizational structure as solution to the trade-off between controlling behavior based on authority rights and minimizing costs for implementing high efforts. The analysis includes the owner of a firm, a top manager and two division heads. If it is more...

Over the past 20 years, at least 267 people have been killed in one factory fire after another in the suburbs of Dhaka, Bangladesh. In a recent factory fire in Ashulia, there was no fire prevention management in place to protect human life. There are virtually no economic studies concerning...

We examine how partners in vertical exchange relationships actually resolve disputes that are sufficiently serious to get lawyers involved. Reaching beyond the usual domain of organizational and management research we leverage findings from law and economics to offer a novel organizational...

This paper attempts to address some common questions regarding the evolution of global natural gas markets through application of transaction cost theories.

This article shows how the endogenous human capital affects the labor market equilibrium when jobs provided by firms can be either unskilled or skilled and workers differ in their education level which can be either low-educated or high-educated. We develop an equilibrium search model in which...

Governments dislike poorly performing public firms and often see deregulation and privatisation as a way to improve performance and social welfare. From a theoretical point of view poor performance may be due to information asymmetries between the informed public firm and the relatively...

The efficient allocation of control rights in inter-firm collaborations is a widely emphasized issue. In this paper, I empirically identify control rights and the allocation of these rights using a unique survey data set on collaborations between biotechnology and pharmaceutical firms. Fifteen...