This paper provides an explanation of technical inefficiencies of financial exchanges in Europe as well as an empirical analysis of their existence and extent. A single-stage stochastic cost frontier approach is employed, which generates exchange inefficiency scores based on a unique unbalanced...

Cette etude exploratrice est orientee autour de la problematique generale de l'externalisation de la fonction logistique a l'exportation chez les PME manufacturieres quebecoises. Le choix du niveau d'externalisation nous ramene au dilemme opposant "faire", "faire faire" et "faire ensemble", ou...

We propose a simple model of a partially integrated industry which explicitely takes into account persistant production cost differences across upstream firms, such as one might observe in natural resource industries. The model allows us to highlight the respective roles of strategic...

This Paper views authority as the right to undertake decisions that have external effects on other members of the organization. Because of contractual incompleteness, monetary incentives are insufficient to internalize these effects in the decision-maker’s objective. The optimal assignment of...

A monitor is hired to control the agent. Despite the lack of side-contracting opportunities it is shown that the agent and the monitor can collude. The conditions for such implicit collusion are that the monitor should expect future rents from a continued relationship and the agent should have...

A buyer seeks to procure a good characterized by its price and its quality from suppliers who have private information about their cost structure (fixed cost + marginal cost of providing quality). We solve for the optimal buying procedure, i.e. the procedure that maximizes the buyer's expected...

This paper develops an industry equilibrium model of vertical integration under contractual imperfections with specific input suppliers and external investors. I assume that vertical integration economizes on the needs for contracts with specific input suppliers at the cost of higher financial...

Does vertical integration reduce or increase transaction costs with external investors? This paper analyzes an incomplete contracts model of vertical integration in which a seller and a buyer with no cash need to finance investments for production. The firm is modeled as a "nexus of contracts"...

Globalization has been identified by many experts as a new way firms organize their activities and also as the emergence of talent as the new stakeholder in the firm. This Paper examines the role of trade integration for the changing nature of the corporation. International trade leads to a...