Based on the adjustment-cost theory of the firm and the resource-based view, we argue that many resources contributing to successful new product development make it more attractive for firms to have wider scope. We test the predictions by looking at both actual firm behavior and production functions

Economic actors have to make lots of decisions, and the paper is based on the premise that it takes time to be involved in any one of them. Attempts to economize on decision-making time imply that groups of peers may abdicate decision-making authority to a small set of managers even though this...

In a bilateral monopoly, we are looking at the seller's incentives to propose an improved widget design under two different negotiation rules. With Renegotiation, the players negotiate a price after a design has been agreed upon, and with Commitment, they negotiate the price beforehand. The...

Firms can be analyzed from the resource or product aspect. This paper develops simple economic tools for analyzing a firm's resource position, and uses a resource product matrix to examine some strategic options suggested by the resource-based view. The resource-based view provides basis for...

We look at the economic functions of firms, contracts, and markets and characterize the optimal scope of the firm. Governance structures appear as equilibria and are compared in terms of production costs - determined by a tradeoff between standardization and adaptation - and adjustment costs –...

We combine the traditions of Coase and Adam Smith to look for the most efficient mechanisms in situations where buyers need sequences of human asset services, but only know their sequence one step ahead. The environment has two critical features: (a) multilateral matching allows gains from...

This series of discussions presents commentaries and a rejoinder on the economic perspectives on branding arising from Moorthy (Moorthy S. (2012) Can brand extension signal product quality? Marketing Sci. 31(5):756-770)