Aoki's profit sharing firm organization is associated with the option evaluation model of investment. The firm is endowed with a shut down option it can exercise when the market price, assumed uncertain, falls below a certain trigger level. The distributive parameter is the result of a...

We analyze the effects of two compound investment options, a shut down and a reopening option, on a Aoki's profit sharing firm organization. Whilst the introduction of a credible threat of shutting down weakens labour's position in the bargaining and favors the shareholders on profit sharing,...

We analyse the behavior of a firm where workers share profits with shareholders by using a model cast in an Aoki framework. Our firm faces two sorts of uncertainty: one relates to the market price assumed to follow a random walk in continuous time and the other relates to internal organization,...

One of the main reasons why workers' enterprises (WE) still represent a relevant chunk of the economy may lay in some affinities with conventional profit maximizing firms. To prove this, we compare the entry policies of WEs and conventional firms when they can decide size at entry while having...

The main aim of the paper is to highlight the relation between flexibility and vertical integration. To this purpose, we go through the selection of the optimal degree of vertical disintegration of a flexible firm which operates in a dynamic uncertain environment. The enterprise we model enjoys...

We investigate the relationship between the extent of vertical flexibility and the underlying financial choices of a firm. By vertical flexibility we mean the opportunity to outsource a necessary input and to reverse the choice as input market conditions dictate. A firm simultaneously selects...