Showing 1 - 10 of 1,982
We analyze the optimal allocation of authority in an organization whose members have conflicting preferences. One party … has decision-relevant private information, and the party who obtains authority decides in a self-interested way. As a … optimal to assign authority to the informed and not to the uninformed party, irrespective of the parties' conflict of interest …
Persistent link: https://www.econbiz.de/10009752337
Oliver Hart and Bengt Holmström were awarded the 2016 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for their fundamental contributions to contract theory. This article offers a short summary and discussion of their path breaking work.
Persistent link: https://www.econbiz.de/10011626725
This paper studies a principal-agent relation in which the principal's private information about the agent's effort choice is more accurate than a noisy public performance measure. For some contingencies the optimal contract has to specify ex post inefficiencies in the form of inefficient...
Persistent link: https://www.econbiz.de/10009752336
This paper analyzes the optimal contract for a consumer to procure a credence good from an expert when (i) the expert might misrepresent his private information about the consumer’s need, (ii) the expert might not choose the requested service since his choice of treatment is non-observable,...
Persistent link: https://www.econbiz.de/10011781931
This paper shows the strategic aspects of international outsourcing in a duopolistic market. Due to different costs of … integrated production and outsourcing, the choice of a firm influences the strategy of the competitor via the output price … the three market constellations, both firms produce integrated, both use outsourcing and the firms operate with different …
Persistent link: https://www.econbiz.de/10008796592
This paper shows the strategic aspects of international outsourcing in an oligopolistic market, if outsourcing is … attractive because of fixed cost savings. We show that outsourcing decisions are strategic substitutes. Furthermore, we … integrated production and thus leads to more outsourcing. Additionally, we analyse how domestic costs and taxation affect the …
Persistent link: https://www.econbiz.de/10008796598
-agent hires the sub-agent (outsourcing). We show that insourcing is always optimal when the principal can perfectly process the … prime-agent's report. When the principal's information process is limited, however, outsourcing can be the prevailing mode … no possibility of collusion arises with outsourcing. …
Persistent link: https://www.econbiz.de/10014503040
Persistent link: https://www.econbiz.de/10014472577
Persistent link: https://www.econbiz.de/10011938779
Our paper contributes to the discussion about Europe’s digital sovereignty. We analyze the relationship between firm performance and the diversification of sourcing countries for imported ICT goods. The analysis is based on administrative data for 3888 German manufacturing firms that imported...
Persistent link: https://www.econbiz.de/10014322475