In non-competitive market characterized by heterogeneous firms and price uncertainty, we discuss the measurement of economies of scale and scope due to process indivisibilities arising from the task-specific production processes of multiproduct firm. Two competing DEA cost models — one based...

The theme of global rebalancing in economic power is now central to international economic analysis, and the issue of the presence and clout of multinational companies from emerging markets has gained importance, in part because of highly publicised cases of acquisitions of (or attempts at...

In the field of global rule-setting for responsible business behaviour, multi-stakeholder standards have emerged in recent years because of their potential for effective consensus-building, knowledge-sharing and interest representation. Proponents also hold that multi-stakeholder standards could...

Investments in Ramp;D can influence a firm's ability to develop new products and to create and adopt innovative technologies that may enhance productivity. However, due to uncertainty regarding the outcome, investments in Ramp;D may lead to an agency problem between the owners and the managers...

How much information should brokers supply on a website? The Internet allows brokers to reduce the cost of providing information to potential buyers. However, brokers may risk disintermediation if they provide too much information. This paper presents a model of a broker's choice of how much...

The paper argues that the major existing economic theories of nonprofit organisation are most suitable to those nonprofits which are protecting and promoting private rather than public interests. These theories therefore do not offer an adequate explanation why some nonprofits do directly serve...

I analyze the strategic use of debt financing to improve a firm's bargaining position with an important supplier -- organized labor. Because maintaining high levels of corporate liquidity can encourage workers to raise their wage demands, a firm with external finance constraints has an incentive...

In this paper I use a principal-agent framework to explore the relation between the hierarchical structure of firms and the accounting information technologies available to them. I allow the principal to choose the number of layers in the firm, the number of agents in each layer, and the...

SUBJECT AREAS: mergers and acquisitions; value creation; corporate governance; boards of directors.CASE SETTING: 1994; USA; pharmaceuticals.Case No: 9-897-048, American Cyanamid: (A)-Board Response to a Hostile Takeover OfferCase No: 9-897-064, American Cyanamid: (B)-Management's Response to the (A)...

What is the relationship between innovation and firm value? Does the type of innovation make a difference? To answer these questions, the authors examine how breakthrough and incremental innovations affect three different facets of firm performance: normal profits, economic rents, and total firm...