We develop a new perspective on the boundary of the firm that is consistent with the empirical observation that the share of entrepreneurs first decreases and then increases in the course of economic development. Existing theory based on transaction costs is difficult to relate to these...

Recent thinking has emphasized the importance of consistency in a firm?s compensation policy. By starting from Williamson?s ideas about idiosyncratic exchange, this view can be supplied with some theoretical foundation. At the same time, the consistency view can be applied to a number of...

This paper presents a firm and market model that is able to reproduce the empirically observed patterns on firm growth and its statistical characteristics. It goes beyond the existing firm models by reproducing all stylized facts established in the literature. Furthermore, the model is flexible...

Firms are not isolated entities of the business world, only transacting at arm's-length distance with suppliers and customers. Instead, multiplex cooperative arrangements and the co-evolution of corporate capabilities abound in the business landscape. Strategizing in the (networked) business...

A computer-generated 3D quantitative fold is presented called Knowledge Valley and this virtual fold is used to model an Innovation-Based View of the evolution and development of SMEs by means of the growth of their knowledge assets. By using concrete values of employee number and annual...

We exploit the network of director interlocks to examine the influence of the board's stakeholder orientation on the firm's disposition towards its stakeholders, director selection, and valuation. Using measures of stakeholder orientation of the board and the firm, we find that the board's...

The recent seminal work of Gabaix (2011) raises a puzzling question: If centralization-putting different projects under the same roof-reduces diversification for investors, how does this situation reconcile with the seemingly contradictory fact that it also boosts a firm's borrowing capacity? To...

Modern multi-tenant firms have as their origin the ancient bazaars of the Middle East and include today's airports, physical and virtual shopping malls, cable television providers, port terminals, trade-shows, sports leagues, and food franchises. The multi-tenant firm operates as a “firm of...

We study the behavior of a firm that consistently maximizes a misspecified profit function. We provide an equilibrium concept where the misspecification error remains undetected. We examine the uniqueness and stability of the equilibria. The model of the price-taking firm belongs to this class....

We study the behavior of a firm that consistently maximizes a misspecified profit function. We provide an equilibrium concept where the misspecification error remains undetected. We examine the uniqueness and stability of the equilibria. The model of the price-taking firm belongs to this class....