This paper uses a game theoretic model to investigate the 1993-94 split-up of the main German pharmaceutical association into an association for multinational, researchbased companies and an association representing small and medium-sized firms. In order to explain the breakdown of cooperation...

Internal organization relies heavily on psychological consistency requirements. This perspective has been emphasized in modern compensation theory, but has not been extended to organization theory. The idea is developed by starting from Williamson's discussion of idiosyncratic exchange. The...