The ultimate control group
Empirical research on the organization of firms requires that firms be classified on the basis of their control structures. This should be done in a way that can potentially be made operational. It is easy to identify the ultimate controller of a hierarchical organization, and the literature has largely focused on this case. But many organizational structures mix hierarchy with collective choice procedures such as voting, or use circular structures under which superiors are accountable to their subordinates. I develop some analytic machinery that can be used to map the authority structures of such organizations, and show that under mild restrictions there is a well-defined ultimate control group. The results are consistent with common intuitions about the nature of control in some familiar economic settings.
(This abstract was borrowed from another version of this item.)
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.
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.
References listed on IDEAS
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.:
- Katzner, Donald W., 1992. "The structure of authority in the firm," Journal of Economic Behavior & Organization, Elsevier, vol. 19(1), pages 41-67, September.
- repec:ner:ucllon:http://discovery.ucl.ac.uk/17678/ is not listed on IDEAS
- Dow, Gregory K. & Putterman, Louis, 2000. "Why capital suppliers (usually) hire workers: what we know and what we need to know," Journal of Economic Behavior & Organization, Elsevier, vol. 43(3), pages 319-336, November.
- Qian, Yingyi, 1994. "Incentives and Loss of Control in an Optimal Hierarchy," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 527-44, July.
- Philippe Aghion & Jean Tirole, 1994.
"Formal and Real Authority in Organizations,"
95-8, Massachusetts Institute of Technology (MIT), Department of Economics.
- Aghion, Philippe & Tirole, Jean, 1997. "Formal and Real Authority in Organizations," Scholarly Articles 4554125, Harvard University Department of Economics.
- Aghion, Philippe & Tirole, Jean, 1994. "Formal and Real Authority in Organizations," IDEI Working Papers 37, Institut d'Économie Industrielle (IDEI), Toulouse.
- Philippe Aghion & Jean Tirole, 1994. "Normal and Real Authority in Organizations," Working papers 94-13, Massachusetts Institute of Technology (MIT), Department of Economics.
- Bowles, Samuel & Gintis, Herbert, 1993. "A Political and Economic Case for the Democratic Enterprise," Economics and Philosophy, Cambridge University Press, vol. 9(01), pages 75-100, April.
- Dow, Gregory K., 2000.
"On the Neutrality of Asset Ownership for Work Incentives,"
Journal of Comparative Economics,
Elsevier, vol. 28(3), pages 581-605, September.
- Dow, G.L., 1999. "On the Neutrality of Asset Ownership for Work Incentives," Discussion Papers dp99-1, Department of Economics, Simon Fraser University.
- Baker, George & Gibbons, Robert & Murphy, Kevin J, 1999. "Informal Authority in Organizations," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(1), pages 56-73, April.
- Sah, R.K., 1991.
"Fallibility In Human Organizations And Political Systems,"
625, Yale - Economic Growth Center.
- Raaj Kumar Sah, 1991. "Fallibility in Human Organizations and Political Systems," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 67-88, Spring.
- Gregory Dow, 2001.
"Allocating Control over Firms: Stock Markets versus Membership Markets,"
Review of Industrial Organization,
Springer, vol. 18(2), pages 201-218, March.
- Gregory K. Dow, 2000. "Allocating Control Over Firms: Stock Markets Versus Membership Markets," Discussion Papers dp00-03, Department of Economics, Simon Fraser University, revised Feb 2000.
- Oliver Hart & John Moore, 1988.
"Property Rights and the Nature of the Firm,"
495, Massachusetts Institute of Technology (MIT), Department of Economics.
- Sah, Raaj Kumar & Stiglitz, Joseph E, 1986.
"The Architecture of Economic Systems: Hierarchies and Polyarchies,"
American Economic Review,
American Economic Association, vol. 76(4), pages 716-27, September.
- Raaj Kumar Sah & Joseph E. Stiglitz, 1984. "The Architecture of Economic Systems: Hierarchies and Polyarchies," NBER Working Papers 1334, National Bureau of Economic Research, Inc.
- Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:49:y:2002:i:1:p:39-49. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.