We model a firm in an institutional market setting, consisting of a production technology and its governance. The governance consists of a hierarchical firm structure, a cost efficiency parameter,and an internal pay system. The depth of the firm is determined by profit maximization under the...

The purpose of this paper is to propose theoretical foundations on the impact of transfer scheme, e.g. Community Agricultural Policy, on income inequality within European Countries. First, we show that ex-post inequality (in the after-transfer distribution) may increase if either initial...

We propose and characterize weighted-egalitarian values for cooperative transferable utility games. Each weighted-egalitarian value divides the worth of the grand coalition into two parts and allocates them through equality and proportionality based on exogenous player weights. We characterize...