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Formal Contracts, Relational Contracts, and the Threat-Point Effect

Itoh, Hideshi; Morita, Hodaka - CESifo - 2011

Can formal contracts help resolving the holdup problem? We address this important question by studying the holdup problem in repeated transactions between a seller and a buyer in which the seller can make relation-specific investments in each period. In contrast to previous findings, we...

Persistent link: https://www.econbiz.de/10009228616

Making Sense of Non-Binding Retail-Price Recommendations

Buehler, Stefan; Gärtner, Dennis L. - CESifo - 2010

We model non-binding retail-price recommendations (RPRs) as a communication device facilitating coordination in vertical supply relations. Assuming both repeated vertical trade and asymmetric information about production costs, we show that RPRs may be part of a relational contract,...

Persistent link: https://www.econbiz.de/10008583652

Global Sourcing of Complex Production Processes

Schwarz, Christian; Suedekum, Jens - CESifo - 2011

We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and global scale. Specifically, the firm decides i) how thinly it wants to slice its production process by choosing the mass of symmetric intermediate inputs that are...

Persistent link: https://www.econbiz.de/10009278130

Comparative Advantage and Skill-Specific Unemployment

Larch, Mario; Lechthaler, Wolfgang - CESifo - 2009

We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two sectors and heterogeneous firms. This allows us to study the distributional consequences and the skill-specific unemployment effects of trade liberalization. We show that the...

Persistent link: https://www.econbiz.de/10005013939

Maskus, Keith E.; Nishioka, Shuichiro - CESifo - 2008

resuscitate HOV by introducing a simple Hicks-neutral (HN) factor-productivity adjustment, an approach that was heavily criticized …. In this paper, we re-examine the productivity question by estimating factor-specific productivities from the individual …-augmenting technological differences. In particular, the factor-productivity adjustment works well for developed members of the OECD. Further …

Persistent link: https://www.econbiz.de/10005406445

Use and Abuse of Authority - A Behavioral Foundation of the Employment Relation

Bartling, Björn; Fehr, Ernst; Schmidt, Klaus - CESifo - 2013

Employment contracts give a principal the authority to decide flexibly which task his agent should execute. However, there is a tradeoff, first pointed out by Simon (1951), between flexibility and employer moral hazard. An employment contract allows the principal to adjust the task quickly to...

Persistent link: https://www.econbiz.de/10010604419

Community Enterprises - An Institutional Innovation

Frey, Bruno S.; Lüthi, Roger; Osterloh, Margit - CESifo - 2011

Management research has long focused on the theory of the firm, studying for-profit organizations that produce privately owned resources based on central authority and within well-defined boundaries. In recent times, a new kind of enterprise has emerged that we call Community Enterprises. They...

Persistent link: https://www.econbiz.de/10009020794

On the Organizational Structure of Multinational Firms - Which Sourcing Mode for which Input?

Nowak, Verena; Schwarz, Christian; Suedekum, Jens - CESifo - 2012

organizational decision is driven by two countervailing effects: the ownership rights effect favors outsourcing, while the “indirect … outsourcing of the “less important” supplier is chosen in equilibrium. We also consider an open economy setup where the producer …

Persistent link: https://www.econbiz.de/10010550244

The Bazaar Effect, Unbundling of Comparative Advantage, and Migration

Kohler, Wilhelm - CESifo - 2007

equilibrium where input sub-bundles may be traded (offshoring). The model allows for several goods and two fragments, produced …. I also explore trade policy implications and compare offshoring to migration. …

Persistent link: https://www.econbiz.de/10005181377

Real Exchange Rates in Small Open OECD and Transition Economies: Comparing Apples with Oranges?

Egert, Balazs; Lommatzsch, Kirsten; Lahrèche-Révil, Amina - CESifo - 2007

We find that productivity gains in tradables cause an appreciation of the real exchange rate via both tradable and …

Persistent link: https://www.econbiz.de/10005405897