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We incorporate trade in tasks l a Grossman and Rossi-Hansberg (2008) into the international trade theory of fi rm organization of Marin and Verdier (2012) to examine how off shoring affects the way firms organize. We test the predictions of the model based on firm level data of 660 Austrian and...
Persistent link: https://www.econbiz.de/10010491080
To explain organizational decisions in multistage production processes we assume a production process with one producer and two suppliers of which one is the firm's direct supplier and the other one is the supplier of the supplier. The firm decides only on the organizational form of her direct...
Persistent link: https://www.econbiz.de/10010491155
This paper introduces the theory of firm organization under moral hazard into an equilibrium model of international trade with heterogeneous talents and technologies. The model is able to explain how the allocation of power and the provision of financial incentives inside firms varies within and...
Persistent link: https://www.econbiz.de/10010336263
.7 and 19.1 percent of industry markups can be attributed to cooperative industry behavior, while the remaining markup is due …
Persistent link: https://www.econbiz.de/10010336310
In the recent financial crisis, risk management tools have been proven inadequate. Model risk, a key component of bank risk, has shown its negative impact. It seems that risk models did not cover the included risks comprehensively and were not kept up-to-date by banks, and also rating agencies....
Persistent link: https://www.econbiz.de/10010339401
individual projects at an imperfect credit market. In particular, we study under which circumstances the firm should raise debt … competition at the credit market and the fi rm s level of equity are both either rather low or rather high. In this case, funding …
Persistent link: https://www.econbiz.de/10010339935
undertaken and the amount of duplication of research. A characterization of the equilibrium market portfolio is provided. It is … optimal portfolio is provided. It is shown under which conditions market suboptimally invests in the variety and duplication … of research projects. Market underinvestment in the variety of R&D projects is demonstrated for a large class of …
Persistent link: https://www.econbiz.de/10010340555
itself. Two major paths to adopt the new platform in MVPD market cover the switching cost and effect for the new platform … market (Schmalensee, 1982), the product diversity from the supplier side (Blattberg and Deighton, 1996; Klemperer, 1995; Ram …
Persistent link: https://www.econbiz.de/10010470119