IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Technology, Information and the Decentralization of the Firm

Listed author(s):
  • D, Acemoglu

    (Crest)

  • Philippe Aghion

    (Crest)

  • Claire Lelarge

    (Crest)

  • John Van Reenen

    (Crest)

  • Fabrizzio Zilibotti

    (Crest)

Registered author(s):

    This paper develops a framework to analyze the relationship between the diffusion ofnew technologies and the decentralization decisions of firms. Centralized controlrelies on the information of the principal, which we equate with publicly availableinformation. Decentralized control, on the other hand, delegates authority to amanager with superior information. However, the manager can use her informationaladvantage to make choices that are not in the best interest of the principal. As theavailable public information about the specific technology increases, the trade-offshifts in favor of centralization. We show that firms closer to the technologicalfrontier, firms in more heterogeneous environments and younger firms are morelikely to choose decentralization. Using three datasets of French and British firms inthe 1990s, we report robust correlations consistent with these predictions.

    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.

    File URL: http://www.crest.fr/images/doctravail/2006-12.pdf
    File Function: Crest working paper version
    Download Restriction: no

    Paper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2006-12.

    as
    in new window

    Length: 68
    Date of creation: 2006
    Handle: RePEc:crs:wpaper:2006-12
    Contact details of provider: Postal:
    Bâtiment ENSAE, 5 rue Henry LE Chatelier, 91120 Palaiseau

    Phone: 01 41 17 60 81
    Web page: http://www.crest.fr

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:crs:wpaper:2006-12. 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: (Florian Sallaberry)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.