IDEAS home Printed from https://ideas.repec.org/p/tiu/tiucen/7b3f7549-e97f-4e5b-92e6-2eb732029bf0.html
   My bibliography  Save this paper

Values and Governance Systems

Author

Listed:
  • Ruys, P.H.M.

    (Tilburg University, Center For Economic Research)

  • van den Brink, J.R.

    (Tilburg University, Center For Economic Research)

  • Semenov, R.

    (Tilburg University, Center For Economic Research)

Abstract

Cooperative behavior as well as other cultural rules and values are made explicit in organizational units that procure and provide a common service. The common service is procured by a club, which consists of a user-value function, a representation governance, and a budget-allocation function. The common service is provided by a firm, which consists of a value-production function, an implementation governance, and a remuneration function. They extend the concepts of the consumer and the producer in neoclassical theory. The functions mentioned are determined by cooperative games. A governance is represented by a structure of principal-agent relations. The representation governance is a bottom-up hierarchy, empowered by the members of the club. The implementation governance is a top-down hierarchy, empowered by the governor of the firm. The optimal size of the club organization and the firm organization in a competitive environment is determined under certain conditions. This description of a club and a firm allows characterization of some cultural dimensions in the society. For one such cultural dimension, viz. the degree of collectivism in society, the impact on the optimal organization is shown.

Suggested Citation

  • Ruys, P.H.M. & van den Brink, J.R. & Semenov, R., 1999. "Values and Governance Systems," Discussion Paper 1999-66, Tilburg University, Center for Economic Research.
  • Handle: RePEc:tiu:tiucen:7b3f7549-e97f-4e5b-92e6-2eb732029bf0
    as

    Download full text from publisher

    File URL: https://pure.uvt.nl/ws/portalfiles/portal/532458/66.pdf
    Download Restriction: no

    Other versions of this item:

    • Pieter H.M. Ruys & René van den Brink & Radislav Semenov, 2000. "Values and governance systems," Chapters,in: Institutions, Contracts and Organizations, chapter 27 Edward Elgar Publishing.

    References listed on IDEAS

    as
    1. van den Brink, J.R. & Ruys, P.H.M., 1996. "The internal organization of the firm and its external environment," Discussion Paper 1996-113, Tilburg University, Center for Economic Research.
    2. H.M. Prast, 1997. "Inflation, distortionary taxation and the design of monetary policy: the role of social cohesion," WO Research Memoranda (discontinued) 508, Netherlands Central Bank, Research Department.
    3. Ellingsen, Tore, 1998. "Externalities vs internalities: a model of political integration," Journal of Public Economics, Elsevier, vol. 68(2), pages 251-268, May.
    4. Michael Keren & David Levhari, 1979. "The Optimum Span of Control in a Pure Hierarchy," Management Science, INFORMS, vol. 25(11), pages 1162-1172, November.
    5. Bryan Ellickson & Birgit Grodal & Suzanne Scotchmer & William R. Zame, 1999. "Clubs and the Market," Econometrica, Econometric Society, vol. 67(5), pages 1185-1218, September.
    6. van den Brink, J.R. & Ruys, P.H.M. & Semenov, R., 1999. "Governance of Clubs and Firms with Cultural Dimensions," Discussion Paper 1999-101, Tilburg University, Center for Economic Research.
    7. repec:fth:tilbur:99101 is not listed on IDEAS
    8. Oliver E. Williamson, 1967. "Hierarchical Control and Optimum Firm Size," Journal of Political Economy, University of Chicago Press, vol. 75, pages 123-123.
    9. van den Brink, Rene & Gilles, Robert P., 1996. "Axiomatizations of the Conjunctive Permission Value for Games with Permission Structures," Games and Economic Behavior, Elsevier, vol. 12(1), pages 113-126, January.
    10. van den Brink, J.R., 1996. "Skewness of the wage distribution in a firm and the substitutability of labor inputs," Research Memorandum FEW 739, Tilburg University, School of Economics and Management.
    11. Herbert A. Simon, 1991. "Organizations and Markets," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 25-44, Spring.
    12. Michael Keren & David Levhari, 1983. "The Internal Organization of the Firm and the Shape of Average Costs," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 474-486, Autumn.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. René van den Brink, 2017. "Games with a Permission Structure: a survey on generalizations and applications," Tinbergen Institute Discussion Papers 17-016/II, Tinbergen Institute.
    2. Edward Kane, 2000. "Architecture of Supra-Governmental International Financial Regulation," Journal of Financial Services Research, Springer;Western Finance Association, vol. 18(2), pages 301-318, December.
    3. René Brink & Pieter Ruys, 2008. "Technology driven organizational structure of the firm," Annals of Finance, Springer, vol. 4(4), pages 481-503, October.
    4. van den Brink, J.R. & Ruys, P.H.M. & Semenov, R., 1999. "Governance of Clubs and Firms with Cultural Dimensions," Discussion Paper 1999-101, Tilburg University, Center for Economic Research.

    More about this item

    Keywords

    Governance; cooperation; hierarchy; club; firm; institution; service economy; values; culture; organization;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H1 - Public Economics - - Structure and Scope of Government
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tiu:tiucen:7b3f7549-e97f-4e5b-92e6-2eb732029bf0. 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: (Richard Broekman). General contact details of provider: http://center.uvt.nl .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.