This study adds to our understanding of outsourcing decision-making by examining the differential effect of potential cost and non-cost innovation benefits on outsourcing choices made by top managers. In addition, we show that value appropriation - which we define in this context as a firm's...

This paper investigates how an organization’s formal hierarchy affects the gender diversity in its applicant pool. One perspective based on theories of gendered organizations suggests that, because women may perceive “flat” organizational structures with few hierarchical levels as...

We exploit plausibly exogenous variation in the staggered entry of new managers into India's 42 public R&D labs between 1994 and 2006 to study how alignment between the CEO and middle-level managers affect research productivity. We show that the introduction of new lab managers aligned with the...

In the economic literature on market competition, firms are often modeled as single decision makers and the internal organization of the firm is neglected (unitary player assumption). However, as the literature on strategic delegation suggests, one can not generally expect that the behavior of...

This paper revisits a vertically differentiated duopoly game where producers first simultaneously set qualities and then simultaneously set prices. We theoretically and experimentally explore the impact of different consumers’ preferences dispersion levels. We find that firms suboptimally...

In the economic literature on market competition, firms are often modelled as individual decision makers and the internal organization of the firm is neglected (unitary player assumption). However, as the literature on strategic delegation suggests, one can not generally expect that the behavior...

Recent experimental research has shown that when rating systems are available, buyers are more generous in accepting unfair offers made by sellers. It has also shown that sellers make fairer decisions when they are rated, while some studies show that they are little affected by the rating...

We report the results of experiments designed to test recent theories of vertical foreclosure. Consistent with the theory, the upstream firm has more difficulty commiting to supply the monopoly quantity in treatments with non-integration and secret contracts than in either treatments with...

Microfinance has been heralded as an effective way to address imperfections in credit markets. From a theoretical perspective, however, the success of microfinance contracts has puzzling elements. In particular, the group-based mechanisms often employed are vulnerable to free-riding and...

Microfinance has been heralded as an effective way to address imperfections in credit markets. From a theoretical perspective, however, the success of microfinance contracts has puzzling elements. In particular, the group-based mechanisms often employed are vulnerable to free-riding and...