We apply the property rights theory of Grossman-Hart-Moore in the music industry and study the optimal allocation of copyright between the artists who create music and the labels who promote and distribute it. Digital technology opens up a role for new intermediaries. We find that entry of...

This paper studies the impact of innovation on the organizational structure. The theoretical framework predicts that a larger parental pool of knowledge raises the probability of oshoring. This holds in a national as well as an international context. However, when the producer loses territorial...

This paper studies the impact of innovation on the organizational structure. The theoretical framework predicts that a larger parental pool of knowledge raises the probability of offshoring. This holds in a national as well as an international context. However, when the producer loses...

Using a unique employee-establishment matched survey, we find a causal relationship between an individual employee's trust of management and the delegation of real authority. We utilize both fixed effects and instrumental variables to control for unobserved factors: establishment-level fixed...

The influential empirical literature based on the job-demand-control theory finds a strong relationship between an employee’s control over their work (autonomy), the demands of the job, and negative health outcomes such as depression. Previous studies have neglected the possible endogeneity of...

The profitability of a firm is jointly determined by it's organizational structure and the market structure. To explore the effects of market factors on optimal organizational structure we develop a real-time information processing model of a multi unit firm in a dynamic duopoly environment. Our...

Comparison of three related adverse selection models is presented. There is a selfish owner, a selfish employee, and an imperfectly altruistic employee. Model 1 involves hiring choice. The owner hires the altruist because he produces the same for less pay due to his positive externality for the...

There is much debate and diversity of results in the literature on the relationships between formal governance and trust. Drawing on concepts such as substitution, complementarity and crowding out, scholars have variously argued for (and found evidence consistent with) both positive and negative...

This paper adopts the incomplete contracting perspective to study a firm's continuous choice between producing an essential input in-house (full integration), buying it from an outside supplier (non-integration) and doing a combination of both (tapered integration), when (i) an idiosyncratic...