Entrepreneurs, Managers, and the Organization of Work
AbstractThis paper presents an explicit model of the entrepreneur’s role in organizing the work undertaken by employees. The model assumes that agents vary in their ability to carry out this task, and so in one sense the model is a special case of Lucas’ [Bell Journal of Economics, 9, pp. 508-523, (1978)] span of control framework. However, the model also relates ability to risk. As in Kihlstrom and Laffont [Journal of Political Economy, 87, pp. 719-748 (1979)], the entrepreneur bears all risk. But while Kihlstrom and Laffont assume the entrepreneur bears all risk and show that as a consequence the least risk averse become entrepreneurs, in the present model all agents are risk neutral but entrepreneurs bear all risk as an equilibrium outcome. The model is used to study the consequences of firm growth driven by entrepreneurial learning or by rising demand.
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Bibliographic InfoPaper provided by Florida International University, Department of Economics in its series Working Papers with number 0706.
Length: 24 pages
Date of creation: Aug 2007
Date of revision:
Entrepreneurship; small business management; coordination.;
Find related papers by JEL classification:
- M11 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Production Management
- M12 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Personnel Management; Executive Compensation
- M54 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Labor Management
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-07-07 (All new papers)
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.:
- Caballero, Ricardo J., 1999.
Handbook of Macroeconomics,
in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 12, pages 813-862
- Jeffrey I. Bernstein & Theofanis P. Mamuneas & Panos Pashardes, 2004. "Technical Efficiency and U.S. Manufacturing Productivity Growth," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 402-412, February.
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