Advanced Search
MyIDEAS: Login

The choice of organizational form under intrafirm bargaining rules

Contents:

Author Info

  • Kiyotaki, Fumi
  • Miyakawa, Toshiji
Registered author(s):

    Abstract

    This paper studies the choice of organizational form under incomplete contracts. We identify an organizational form with a rule of ex-post bargaining and compare four types of organization: horizontal organizations, inverted pyramidal hierarchies, pyramidal hierarchies and vertical hierarchies. We show that if the human capital investments of all members are perfectly complementary, the horizontal organization is chosen. If the investments of two players including the owner are essential, the inverted pyramidal hierarchy can occur. Pyramidal hierarchies minimize the agency cost if investments are non-firm-specific. The vertical hierarchy emerges when the owner can motivate a player who undertakes firm-specific investment by assigning him to the middle tier. We also examine who should be assigned to the middle tier in a vertical hierarchy.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/pii/S0889158312000329
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Journal of the Japanese and International Economies.

    Volume (Year): 26 (2012)
    Issue (Month): 3 ()
    Pages: 369-392

    as in new window
    Handle: RePEc:eee:jjieco:v:26:y:2012:i:3:p:369-392

    Contact details of provider:
    Web page: http://www.elsevier.com/locate/inca/622903

    Related research

    Keywords: Organizational form; Firm-specific investment; Incomplete contract; Noncooperative bargaining rule;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:jjieco:v:26:y:2012:i:3:p:369-392

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.