Showing 1 - 10 of 22
Bounded rationality provides a fundamental economic explanation for non-rational modes of behavior. These non-rational modes underlie both the erratic perturbations of entrepreneurship and the systematic waves of diffusion they initiate which in turn guarantee that the economy operates out of...
Persistent link: https://www.econbiz.de/10011019055
The multinational firm (MNF) is introduced as the intersection between trade theory and the theory of the firm. I show that economies of scale associated with various knowledge inputs have made it possible for firms to grow large through internationalization and, once large, staying competitive...
Persistent link: https://www.econbiz.de/10011019068
The theory of the firm suggests that firms can respond to poor contract enforcement by vertically integrating their production process. The purpose of this paper is to examine whether firms' integration opportunities affect the way institutions determine international trade patterns. We find...
Persistent link: https://www.econbiz.de/10009251249
The make-or-buy decision is analyzed in a simple framework combining contractual incompleteness with the existence of imperfect but contractible performance measures. Contractual incompleteness gives rise to two regimes, identified with make and buy. The performance measure on which...
Persistent link: https://www.econbiz.de/10008502563
We show that, in the case when innovations are for sale, increased product market competition, captured by reduced product market profits, can increase the incentives for innovations. The reason is that the incentive to innovate depends on the acquisition price which, in turn, might increase...
Persistent link: https://www.econbiz.de/10005419538
The make-or-buy decision is analyzed in a three-layer principal-management-agent model. There is a cost-saving/quality tradeoff in effort provision. The principal chooses between employing an in-house management and contracting with an independent management; the cost-saving incentives facing...
Persistent link: https://www.econbiz.de/10005645337
No abstract.
Persistent link: https://www.econbiz.de/10010684417
This paper is concerned with ownership organization in the process of industrial growth and transformation. It stresses the difficulties of changing an established and successful pattern of behavior. The meso-level of organization is used to interpret coordination of economic activities between...
Persistent link: https://www.econbiz.de/10010684425
No abstract.
Persistent link: https://www.econbiz.de/10010684481
No abstract.
Persistent link: https://www.econbiz.de/10010684535