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Hierarchy and the size of a firm

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  • Tobias Hiller

    (University Leipzig)

Abstract

In this note, we apply weighted hierarchical games of cooperative game theory to the problem of optimal firm size of the firm. In particular, we analyze the influence of production technology on the size of the firm. Our note enhances previous approaches using a permission structure with equally strong relationships between predecessor and direct successors.

Suggested Citation

  • Tobias Hiller, 2021. "Hierarchy and the size of a firm," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 68(3), pages 389-404, September.
    • Handle: RePEc:spr:inrvec:v:68:y:2021:i:3:d:10.1007_s12232-021-00375-z
    DOI: 10.1007/s12232-021-00375-z
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    More about this item

    Keywords

    Cooperative game theory; Hierarchy; wH $$^{mathrm{My}}$$ My value;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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