Resource allocation and organizational form

American Economic Journal: Microeconomics

Volumn 2, Issue 2, 2009, Pages 1-33

  Friebel, Guido ^a,b   Raith, Michael ^c  

^a GOETHE UNIVERSITY   (Germany)

^b TOULOUSE SCHOOL OF ECONOMICS   (France)

^c UNIVERSITY OF ROCHESTER   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 85017119054     PISSN: 19457669     EISSN: 19457685     Source Type: Journal    
DOI: 10.1257/mic.2.2.1     Document Type: Article

References (58)

1. Aghion, Philippe, and Jean Tirole. 1997. "Formal and Real Authority in Organizations." Journal of Political Economy, 105(1): 1-29.
2. Aghion, Philippe, Patrick Bolton, and Steven Fries. 1999. "Optimal Design of Bank Bailouts: The Case of Transition Economies." Journal of Institutional and Theoretical Economics, 155(1): 51-70.
3. Aghion, Philippe, Mathias Dewatripont, and Patrick Rey. 2004. "Transferable Control." Journal of the European Economic Association, 2(1): 115-38.
4. Alchian, Armen A., and Harold Demsetz. 1972. "Production, Information Costs, and Economic Organization." American Economic Review, 62(5): 777-95.
5. Alonso, Ricardo, Wouter Dessein, and Niko Matouschek. 2008. "When Does Coordination Require Centralization?" American Economic Review, 98(1): 145-79.
6. Athey, Susan, and John Roberts. 2001. "Organizational Design: Decision Rights and Incentive Contracts." American Economic Review, 91(2): 200-205.
7. Barney, Jay. 1991. "Firm Resources and Sustained Competitive Advantage." Journal of Management, 17(1): 99-120.
8. Bernardo, Antonio E., Hongbin Cai, and Jiang Luo. 2001. "Capital Budgeting and Compensation with Asymmetric Information and Moral Hazard." Journal of Financial Economics, 61(3): 311-44.
9. Bernardo, Antonio E., Hongbin Cai, and Jiang Luo. 2004. "Capital Budgeting in Multidivision Firms: Information, Agency, and Incentives." Review of Financial Studies, 17(3): 739-67.
10. Bolton, Patrick, and David S. Scharfstein. 1998. "Corporate Finance, the Theory of the Firm, and Organizations." Journal of Economic Perspectives, 12(4): 95-114.
11. Brusco, Sandro, and Fausto Panunzi. 2005. "Reallocation of Corporate Resources and Managerial Incentives in Internal Capital Markets." European Economic Review, 49(3): 659-81.
12. Chandler, Alfred D. 1977. The Visible Hand: The Managerial Revolution in American Business. Cambridge, MA: Belknap Press.
13. Chandler, Alfred D. 1990. Scale and Scope: The Dynamics of Industrial Capitalism. Cambridge, MA: Belknap Press.
14. Coase, Ronald H. 1937. "The Nature of the Firm." Economica, 4(16): 386-405.
15. Crawford, Vincent P., and Joel Sobel. 1982. "Strategic Information Transmission." Econometrica, 50(6): 1431-51.
16. Crozier, Michel. 1964. The Bureaucratic Phenomenon. Chicago: University of Chicago Press.
17. Dessein, Wouter. 2002. "Authority and Communication in Organizations." Review of Economic Studies, 69(4): 811-38.
18. Dessein, Wouter, Luis Garicano, and Robert Gertner. 2008. "Organizing for Synergies." Unpublished.
19. Dewatripont, Mathias. 2001. "Authority." Walras-Bowley Lecture, 2001 North American Summer Meeting of the Econometric Society, Washington, DC, June 21, 2001.
20. Dewatripont, Mathias, and Jean Tirole. 1999. "Advocates." Journal of Political Economy, 107(1): 1-39.
21. Gertner, Robert H., David S. Scharfstein, and Jeremy C. Stein. 1994. "Internal Versus External Capital Markets." Quarterly Journal of Economics, 109(4): 1211-30.
22. Gibbons, Robert. 2005. "Four Formal(izable) Theories of the Firm?" Journal of Economic Behavior and Organization, 58(2): 200-245.
23. Grossman, Sanford J., and Oliver D. Hart. 1986. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration." Journal of Political Economy, 94(4): 691-719.
24. Harris, Milton, and Artur Raviv. 1996. "The Capital Budgeting Process: Incentives and Information." Journal of Finance, 51(4): 1139-74.
25. Harris, Milton, and Artur Raviv. 1998. "Capital Budgeting and Delegation." Journal of Financial Economics, 50(3): 259-89.
26. Hart, Oliver, and Bengt Holmström. 2002. "A Theory of Firm Scope." Unpublished.
27. Hart, Oliver, and John Moore. 2005. "On the Design of Hierarchies: Coordination Versus Specialization." Journal of Political Economy, 113(4): 675-702.
28. Holmström, Bengt. 1982. "Moral Hazard in Teams." Bell Journal of Economics, 13(2): 324-40.
29. Holmström, Bengt. 1999. "The Firm as a Subeconomy." Journal of Law, Economics, and Organization, 15(1): 74-102.
30. Holmström, Bengt, and Paul Milgrom. 1991. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design." Journal of Law, Economics, and Organization, 7: 24-52.
31. Holmström, Bengt, and Paul Milgrom. 1994. "The Firm as an Incentive System." American Economic Review, 84(4): 972-91.
32. Holmström, Bengt, and Jean Tirole. 1991. "Transfer Pricing and Organizational Form." Journal of Law, Economics, and Organization, 7(2): 201-28.
33. Inderst, Roman, and Manuel Klein. 2007. "Innovation, Endogenous Overinvestment, and Incentive Pay." RAND Journal of Economics, 38(4): 881-904.
34. Inderst, Roman, and Christian Laux. 2005. "Incentives in Internal Capital Markets: Capital Constraints, Competition, and Investment Opportunities." RAND Journal of Economics, 36(1): 215-28.
35. Levitt, Steven D., and Christopher M. Snyder. 1997. "Is No News Bad News? Information Transmission and the Role Of 'Early Warning' In the Principal-Agent Model." RAND Journal of Economics, 28(4): 641-61.
36. Mailath, George J., Volker Nocke, and Andrew Postlewaite. 2004. "Business Strategy, Human Capital, and Managerial Incentives." Journal of Economics and Management Strategy, 13(4): 617-33.
37. Marino, Anthony M., and Jan Zabojnik. 2004. "Internal Competition for Corporate Resources and Incentives in Teams." RAND Journal of Economics, 35(4): 710-27.
38. Marketing Week. 2005. "P&G Scales Up Global Ambitions." February 3.
39. Matsusaka, John G. 2001. "Corporate Diversification, Value Maximization, and Organizational Capabilities." Journal of Business, 74(3): 409-31.
40. Meyer, Margaret, Paul Milgrom, and John Roberts. 1992. "Organizational Prospects, Influence Costs, and Ownership Changes." Journal of Economics and Management Strategy, 1(1): 9-35.
41. Milgrom, Paul, and John Roberts. 1988. "An Economic Approach to Influence Activities in Organizations." In Organizations and Institutions: Sociological and Economic Approaches to the Analysis of Social Structure, ed. Christopher Winship and Sherwin Rosen, 154-79. Chicago: University of Chicago Press.
42. Milgrom, Paul, and John Roberts. 1990. "Bargaining Costs, Influence Costs, and the Organization of Economic Activity." In Perspectives on Positive Political Economy, ed. James E. Alt and Kenneth A. Shepsle, 57-89. Cambridge, UK: Cambridge University Press.
43. Montgomery, Cynthia A., and Birger Wernerfelt. 1988. "Diversification, Ricardian Rents, and Tobin's Q." RAND Journal of Economics, 19(4): 623-32.
44. Ozbas, Oguzhan. 2005. "Integration, Organizational Processes, and Allocation of Resources." Journal of Financial Economics, 75(1): 201-42.
45. Penrose, Edith. 1959. The Theory of the Growth of the Firm. Oxford: Oxford University Press.
46. Povel, Paul. 1999. "Optimal 'Soft' Or 'Tough' Bankruptcy Procedures." Journal of Law, Economics, and Organization, 15(3): 659-84.
47. Rantakari, Heikki. 2008. "Governing Adaptation." Review of Economic Studies, 75(4): 1257-85.
48. Rayo, Luis. 2007. "Relational Incentives and Moral Hazard in Teams." Review of Economic Studies, 74(3): 937-63.
49. Roberts, John. 2004. The Modern Firm: Organizational Design for Performance and Growth. Oxford: Oxford University Press.
50. Scharfstein, David S., and Jeremy C. Stein. 2000. "The Dark Side of Internal Capital Markets: Divisional Rent-Seeking and Inefficient Investment." Journal of Finance, 55(6): 2537-64.
51. Stein, Jeremy C. 1997. "Internal Capital Markets and the Competition for Corporate Resources." Journal of Finance, 52(1): 111-33.
52. Stein, Jeremy C. 2002. "Information Production and Capital Allocation: Decentralized Versus Hierarchical Firms." Journal of Finance, 57(5): 1891-921.
53. Sutton, John. 2005. "Competing in Capabilities: An Informal Overview." Unpublished.
54. Teece, David J. 1982. "Towards an Economic Theory of the Multiproduct Firm." Journal of Economic Behavior and Organization, 3(1): 39-63.
55. Wernerfelt, Birger. 1984. "A Resource-Based View of the Firm." Strategic Management Journal, 5(2): 171-80.
56. Williamson, Oliver E. 1975. Markets and Hierarchies: Analysis and Antitrust Implications. New York: The Free Press.
57. Williamson, Oliver E. 1985. The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting. New York: The Free Press.
58. Wulf, Julie. 2009. "Influence and Inefficiency in the Internal Capital Market." Journal of Economic Behavior and Organization, 72(1): 305-21