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Economics

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The structure of firms

Article Abstract:

An analysis of various organizational forms under a unit framework is presented. The analysis focuses on the U-form and the M-form of organizational arrangements. The U-form is conditioned by a two-round communication game with observable efforts and adverse selection problems while the M-form is conditioned by a single round and pure adverse selection. It is shown that U-forms are superior when control loss problems are minimal.

Economic aspects, Organizational change

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Collusive behavior with heterogeneous firms

Article Abstract:

An analysis of collusive firm behavior in the context of a repeated duopoly with heterogeneous firms reveals that the equilibrium where firms are both indifferent to colluding and defecting is Pareto-optimal. The study also reveals that the arrangement is likely to be the outcome of explicit negotiations that, in turn, could be the focal point at which firms may tacitly coordinate.

Price fixing, Duopolies

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The choice of organizational form in strategic contexts

Article Abstract:

An analysis of organizational behavior in strategic contexts reveals that organizational form depends also on the bargaining power of different interest groups, their attitudes towards risk, timing of moves and the possibility of side-payments. Management should not only focus on internal control loss problems as other factors also influence organizational structure.

Reports, Organizational research, Organizational behavior

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