Because contracts among input suppliers are incomplete, it is necessary to assign rights to determine the policies of the firm. Two leading contenders for such control rights are investors and workers. Large enterprises are generally controlled by capital suppliers or their agents. We trace this pattern to an underlying asymmetry in the characteristics of capital and labor.
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Paper provided by Department of Economics, Simon Fraser University in its series Discussion Papers with number
dp98-08.
Length: 40 pages Date of creation: 1998 Date of revision: Handle: RePEc:sfu:sfudps:dp98-08
Contact details of provider: Postal: Department of Economics, Simon Fraser University, 8888 University Drive, Burnaby, BC, V5A 1S6, Canada Phone: (778)782-3508 Fax: (778)782-5944 Web page: http://www.econ.sfu.ca/ More information through EDIRC
Find related papers by JEL classification: L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
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