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Abilities and the structure of the firm

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  • Tobias Hiller

    (University of Leipzig)

Abstract

In this paper, we enhance the production games approach introduced by Hiller (Manag Decis Econ 40(5):520–525, 2019) with aspects from a recent article by Morelli and Park (Games Econ Behav 96(1):90–96, 2016), to analyze how abilities of employees influence the structure and the wage scheme of the firm. The analysis is done within the framework of cooperative game theory. Concretely, we apply the coalition structure approach and the $$\chi$$ χ value (Casajus in Games Econ Behav 65(1):49–61, 2009).

Suggested Citation

  • Tobias Hiller, 2022. "Abilities and the structure of the firm," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(3), pages 339-349, September.
    • Handle: RePEc:spr:inrvec:v:69:y:2022:i:3:d:10.1007_s12232-022-00394-4
    DOI: 10.1007/s12232-022-00394-4
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    References listed on IDEAS

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    1. Casajus, André, 2009. "Outside options, component efficiency, and stability," Games and Economic Behavior, Elsevier, vol. 65(1), pages 49-61, January.
    2. Morelli, Massimo & Park, In-Uck, 2016. "Internal hierarchy and stable coalition structures," Games and Economic Behavior, Elsevier, vol. 96(C), pages 90-96.
    3. Harald Wiese, 2007. "Measuring The Power Of Parties Within Government Coalitions," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 9(02), pages 307-322.
    4. Bogomolnaia, Anna & Jackson, Matthew O., 2002. "The Stability of Hedonic Coalition Structures," Games and Economic Behavior, Elsevier, vol. 38(2), pages 201-230, February.
    5. Tayfun Sönmez & Suryapratim Banerjee & Hideo Konishi, 2001. "Core in a simple coalition formation game," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 18(1), pages 135-153.
    6. AUMANN, Robert J. & DREZE, Jacques H., 1974. "Cooperative games with coalition structures," LIDAM Reprints CORE 217, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-1064, July.
    8. Ettore Damiano & Hao Li & Wing Suen, 2010. "First In Village Or Second In Rome?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(1), pages 263-288, February.
    9. Casajus, André, 2008. "On the stability of coalition structures," Economics Letters, Elsevier, vol. 100(2), pages 271-274, August.
    10. , & ,, 2009. "Coalition formation under power relations," Theoretical Economics, Econometric Society, vol. 4(1), March.
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    Cited by:

    1. Tobias Hiller, 2023. "Training, Abilities and the Structure of Teams," Games, MDPI, vol. 14(3), pages 1-8, May.

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    More about this item

    Keywords

    Production games; Abilities; Structure of the firm; $$chi$$ χ reward function; Stability;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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