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Organizational Fixed Costs and Organizational Structure

Author

Listed:
  • Benjamin E. Hermalin

    (University of California at Berkeley)

Abstract

This paper shows how fixed costs can play an important role in determining the structure of organizations. Applications considered include layoffs, downsizing, heterogeneity among firms, and the structure of hierarchies. Agency problems as a source of fixed costs are also considered.

Suggested Citation

  • Benjamin E. Hermalin, 1996. "Organizational Fixed Costs and Organizational Structure," Industrial Organization 9610002, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpio:9610002
    Note: Type of Document - Postscript/PDF; prepared on IBM PC ; to print on Postscript/Any; pages: 22 ; figures: included
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    More about this item

    Keywords

    fixed costs; organizational structure;

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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