This paper assesses different organizational forms in terms of their ability to generate information about investment projects and allocate capital to these projects efficiently. A decentralized approach–with small, single-manager firms–is most likely to be attractive when information about

We examine a duopoly with polluting production where …rms adopt a form of corporate social responsibility (CSR) to de…ne their objective functions. Our analysis focusses on the bearings of CSR on collusion over an in…nite horizon, sustained by either grim trigger strategies or optimal punishments. Our results suggest that assigning a weight to consumer surplus has a pro-competitive e¤ect under both full and par-tial collusion. Conversely, a higher impact of productivity on pollution has an anti-competitive e¤ect under partial collusion, while exerting no e¤ect under full collusion. Under partial collusion, the analysis of the isoquant map of the cartel reveals that complementarity arises between the two weights.

cyberspace, carrying love notes, digital cash, and secret corporate documents. Our personal and economic lives rely more and more on our ability to let such ethereal carrier pigeons mediate at a distance what we used to do with face-to-face meetings, paper documents, and a firm handshake. Unfortunately

Much of the prior research on interorganizational learning has focused on the role of absorptive capacity, a firm’s ability to value, assimilate, and utilize new external knowledge. However, this definition of the construct suggests that a firm has an equal capacity to learn from all other

for competitive advantage in firms. q 2000 Academic Press The ability to transfer knowledge from one unit to another has been found to contribute to the organizational performance of firms in both the manufacturing

This article builds a theoretical framework to help explain governance patterns in global value chains. It draws on three streams of literature – transaction costs economics, production networks, and technological capability and firm-level learning – to identify three variables that play a large

of entry and exit, and the contribution of resource reallocation across firms to aggregate productivity growth. The research also reveals important factors correlated with productivity growth, such as managerial ability, technology use, human capital, and regulation. The more advanced literature

do not increase the proportion of firms relying on external financing. The corporate finance literature suggests that market imperfections, caused by conflicts of interest and informational asymmetries between corporate insiders and investors, constrain firms in their ability to fund investment

likely to employ undocumented workers if competitors do. Rivals’ undocumented employment harms firms ’ ability to survive, while firms ’ own undocumented employment strongly enhances their survival prospects. This suggests that firms enjoy cost savings from employing lower-paid undocumented at wages less

This paper offers a theory of training whereby workers do not pay for general training they receive. The superior information of the current employer regarding its employees’ abilities relative to other firms creates ex post monopsony power, and encourages this employer to provide and pay