I survey the influence of Grossman and Hart's (1986) seminal paper in the field of International Trade. I discuss the implementation of the theory in open-economy environments and its implications for the international organization of production and the structure of international trade flows. I...

The theory of the firm suggests that firms can respond to poor contract enforcement by vertically integrating their production process. The purpose of this paper is to examine whether firms' integration opportunities affect the way institutions determine international trade patterns. We find...

In recent years, the scope of internal auditing has broadened considerably, increasing the importance of internal auditing as part of the organization’s management control structure. This expanding role has changed the demands being put on internal auditors. Their new role requires different...

This paper introduces the concept of intangible assets in sequential supply chains and the importance of their appropriability in the organizational decision of firms. We focus on the quality of intellectual property rights (IPR) institutions, which on top of the hold-up problem between a...

This Article maintains that the decision in Burwell v. Hobby Lobby, which referred to the corporation as a legal fiction designed to serve the interests of the people behind it, signals the “death of the firm” as a unit of legal analysis in which business entities are treated as more than...

Starting from the separation between formal and real authority, the paper considers a hierarchical relation where delegation of control can be used as an incentive mechanism. It shows that delegation is optimal when parties' interests are neither too divergent nor too close. In that case...

Paper presents diverse modes of governance of chemical and biological risks in agri-food sector, assesses their efficiency, complementarities, and challenges, and suggests recommendations for public policies improvement. It defines governance as system of social order responsible for particular...

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 are very few industries that can attract the attention of Congress, multiple federal and state agencies, consumer groups, economists, antitrust lawyers, the business community, farmers, ranchers, and academics as the agriculture workshops have. Of course, with intense interest from...

Since the 1970s, economists have speculated on the effects of the proliferation of new computer and communications capabilities on business structure and performance. The present analysis explores information technology's (IT)relationship to employment and firm structure by examining how IT...