We study internal organization of a rm that comprises a CEO and two division managers. The two key ingredients of our model are externalities among divisions' projects that may require coordination, and effort incentives for the CEO and the two division managers. Depending on how the decision...

This paper studies internal organization of a firm using an incomplete contracting approach `a la Grossman-Hart-Moore and Aghion-Tirole. The two key ingredients of our model are externalities among tasks that require coordination, and investment in task-specific human capital. We compare three...

This paper studies internal organization of a firm using an incomplete contracting approach a la Grossman-Hart-Moore and Aghion-Tirole. The two key ingredients of our model are externalities among tasks that require coordination, and investment in task-specific human capital. We compare three...