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Firm Size And Monitoring

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Author Info
Cheryl Long () (Colgate University)
Richard Boylan () (Culver College of Commerce and Business Administration, University of Alabama)

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Abstract

We present a model of optimal monitoring expenditures. For any technology that yields a conventional ``S-shaped'' production function for monitoring, the optimal level of monitoring is shown to be higher in medium-sized firms than in both small and large firms. Further, the interaction between specialization and agency are shown to lead to an ``S-shaped'' production function.

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File URL: http://www.economicsbulletin.com/2003/volume4/EB-03D20002A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 4 (2003)
Issue (Month): 34 ()
Pages: 1-5
Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Handle: RePEc:ebl:ecbull:v:4:y:2003:i:34:p:1-5

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Related research
Keywords: Specialization Monitoring Firm size

Find related papers by JEL classification:
D2 - Microeconomics - - Production and Organizations
M1 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Neal, Derek, 1993. "Supervision and Wages across Industries," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 409-17, August. [Downloadable!] (restricted)
  2. Brown, Charles & Medoff, James, 1989. "The Employer Size-Wage Effect," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1027-59, October. [Downloadable!] (restricted)
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Statistics
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This page was last updated on 2008-7-12.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.