Homophily in social relations results from both individual preferences and selective opportunities for interaction, but how these two mechanisms interact in large, contemporary organizations is not well understood. We argue that organizational structures and geography delimit opportunities for...

In an internal capital market, individual departments may compete for a share of the firm's budget by engaging in wasteful influence activities. We show that firms with more levels of hierarchy may experience lower influence costs than less hierarchical firms, even though the former provide more...