In the paper the trade-offs among endogenous transaction costs caused by two-sided moral hazard, exogenous monitoring cost, and economies of specialization are specified in a Grossman, Hart, and Moore (GHM) model to absorb Maskin and Tirole's recent critique and Holmstrom and Milgrom's criticism...

Interorganizational trust is an important factor affecting the actions and performance of organizations engaged in strategic alliances and in other dyadic and network relationships. In this article, we examine and consolidate the empirical scholarship on interorganizational trust in the...

To date, much of the literature on institutional economics has relied on abstract metaphors based in exchange. Thus, Williamson introduced the fundamental insights surrounding his “transaction costs” model and discussed the governance of contracts in exchange relationships. Yet organizations...

As the economies are becoming knowledge intensive and industries are encountering hypercompetitive technology environments, and the markets undergoing large scale globalization with firms experiencing wild fluctuations in financial performance, firm governance structure and the functioning of...

Based on an exhaustive and integrated business model framework, this article examines the critical differences between the two main business model paradigms – the one inherited from PC/console games and the one promoted by mobile and online games – in regard to the five main business model...

This paper formalizes Cheung, Coase, Stigler, and Young's theory of irrelevance of the size of the firm. This theory states that if division of labor develops within the firm, the average size of the firm and productivity go up side by side. If division of labor develops between firms, the...

The knowledge commons research framework is applied to a case of commons governance grounded in research in modern astronomy. The case, Galaxy Zoo, is a leading example of at least three different contemporary phenomena. In the first place Galaxy Zoo is a global citizen science project, in which...

“Knowledge commons” describes the institutionalized community governance of the sharing and, in some cases, creation, of information, science, knowledge, data, and other types of intellectual and cultural resources. It is the subject of enormous recent interest and enthusiasm with respect to...

Intellectual property frequently carries with it exclusive rights not only over the primary subject matter of the rights granted, but also over ancillary subject matter that is not within the definition of the primary grant, as for example in the patent doctrine of contributory infringement....

This paper adopts the incomplete contracting perspective to study a firm's continuous choice between producing an essential input in-house (full integration), buying it from an outside supplier (non-integration) and doing a combination of both (tapered integration), when (i) an idiosyncratic...