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We model a firm in an institutional market setting, consisting of a production technology and its governance. The governance consists of a hierarchical firm structure, a cost efficiency parameter,and an internal pay system. The depth of the firm is determined by profit maximization under the...
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In this paper we consider the problem of the control of access to a firm's productive asset, embedding the relevant decisionmakers into a general structure of formal authority relations. Within such an authority structure, each decision maker acts as a principal to some decision makers, while...
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damage the work climate. We show that both team incentives and relative incentives can help to create a good work climate. We …
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While most papers_new on team decision-making find teams to behave more selfish, less trusting and less altruistic than …-subjects design we re-examine group polarization by letting subjects make individual as well as team decisions in an experimental … dictator game. In our experiment teams are more selfish than individuals, and the most selfish team member has the strongest …
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Teams, in both firms and in sports, jointly produce a product. While a fixed task is assigned to each member of a team …, the individual team productivity of a worker or player is difficult to conceptualize. This is particularly true, if this … individual team productivity which is closely related to eigenvalue centrality; accordingly we refer to it as eigenvalue …
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Many economic organizations have some relational structure, meaning that economic agents do not only differ with respect to certain individual characteristics such as wealth and preferences, but also belong to some relational structure in which they usually take different positions. Two examples...
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