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We examine how cheap talk communication between managers within the same firm depends on the type of decisions that the firm makes. A firm consists of a headquarters and two operating divisions. Headquarters is unbiased but does not know the demand conditions in the divisions' markets. Each...
Persistent link: https://www.econbiz.de/10011126143
The amount of political information that voters decide to acquire during an electoral campaign depends, among other … candidates attach little value to information because they perceive that voting itself will have little value. Voters that are ex … ante very ideological also attach little value to information because they think that the news will hardly change their …
Persistent link: https://www.econbiz.de/10010745271
A number of recent formal models predict a positive effect of political knowledge on turnout. Both information … proxies of information supply on mass media. Using survey data from the 1997 British General Election Study, I show that …
Persistent link: https://www.econbiz.de/10010746429
decisions to changes in the environment. We show that even if lower-level managers have superior information about local … conditions, and incentive conflicts are negligible, a centralized organization can be better at adapting to local information …
Persistent link: https://www.econbiz.de/10011126298
This paper develops a model of endogenous product selection by firms. The theory is motivated by new evidence we present on the importance of product switching by U.S. manufacturers. Two-thirds of continuing firms change their product mix every five years, and product switches involve more than...
Persistent link: https://www.econbiz.de/10010884551
We estimate the impacts of an energy tax – the Climate Change Levy (CCL) – on the manufacturing sector using panel data from the UK production census. Our identification strategy builds on the comparison of trends in outcomes between plants subject to the CCL and plants that were granted an...
Persistent link: https://www.econbiz.de/10010884619
Individuals and business owners engage in an increasingly complex array of financial decisions that are critical for their success and well-being. Yet a growing literature documents that in both developed and developing countries, a large fraction of the population is unprepared to make these...
Persistent link: https://www.econbiz.de/10010884647
This paper shows that increasing product market competition can have a direct impact on the employment relationship and on wage inequality. I develop a simple model in which an increase in product market competition increases returns to skill through the effect of competition on the sensitivity...
Persistent link: https://www.econbiz.de/10010884671
This paper centres around the question of ownership of firms and managerial competition and how these affect managers and employees’ incentives to invest in human capital. We argue that employees’ incentives in human capital investment are affected by both ownership and competition since...
Persistent link: https://www.econbiz.de/10010928689
At present the USA is - in per capita terms - the top greenhouse gas polluter among the world’s major economies. This is mirrored by the high energy intensity of all sectors of the US economy including manufacturing industries. A potential explanation for the higher energy intensity is lower...
Persistent link: https://www.econbiz.de/10010744908