This paper provides a rationale for equal sharing in heterogeneous partnerships. We introduce project choice and information sharing to a standard team production setting. A team with two agents can choose whether they want to work on a status quo project or on an alternative project. If the...

This paper invesigates the optimal compensation scheme for workers in a team who value not only absolute but also relative incomes. A worker is said to be more ambitious if his utility places more weight on relative income. In this case the firm can exploit the worker's preference for relative...

This book contains eight articles written (six with co-authors who are noted at the beginning of the relevant chapters) over the past 30 years addressing various aspects of the Theory of the Firm. These articles emanated from our desire to understand more thoroughly the forces pushing firms to...

This conference paper suggests that the problem of corporate ethics cannot be reduced to the autonomous person. Although the greatest influence on action and choice is one's moral constitution, it does not follow that the agent's behavior is the same within or without the firm. Ethics is a...

Open innovation is the practice of combining internal R&D efforts with external sources of knowledge. While project developers allocate effort between internal development and external knowledge processing, knowledge brokers search for relevant external ideas. When external knowledge is...