Span of control, transaction costs, and the structure of production chains

This paper builds coordination costs, transaction costs, and other aspects of the theory of the firm into a production chain model with an infinite number of ex ante identical producers. The equilibrium determines prices, allocations of productive tasks across firms, firm sizes, and the number of active firms. These prices and allocations match several stylized facts on firm boundaries, vertical integration, and division of the value chain.

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Year of publication:	2018
Authors:	Kikuchi, Tomoo ; Nishimura, Kazuo ; Stachurski, John
Published in:	Theoretical Economics. - New Haven, CT : The Econometric Society, ISSN 1555-7561. - Vol. 13.2018, 2, p. 729-760
Publisher:	New Haven, CT : The Econometric Society
Subject:	Span of control \| firm boundaries \| fragmentation \| production chains

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Type of publication:	Article
Type of publication (narrower categories):	Article
Language:	English
Other identifiers:	10.3982/TE2376 [DOI] 102422662X [GVK] hdl:10419/197162 [Handle] RePEc:the:publsh:2376 [RePEc]
Classification:	C62 - Existence and Stability Conditions of Equilibrium ; C63 - Computational Techniques ; L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; L16 - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure; Industrial Price Indices
Source:	EconStor

Persistent link: https://www.econbiz.de/10012010042