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More advanced technologies demand higher degrees of specialization - and longer chains of production connecting raw inputs to final outputs. Longer production chains are subject to a "weakest link" effect: they are more fragile and more prone to failure. Optimal chain length is determined by the...
Persistent link: https://www.econbiz.de/10013135410
network in firm performance. We develop a simple model where firms can outsource tasks and search for suppliers in different …' buyer-seller linkages, we find significant improvements in firm performance as well as creation of new buyer-seller links …
Persistent link: https://www.econbiz.de/10013024518
case of perfect competition, an outside owner achieves the first-best; a cooperative typically does not because the rent …'s preferences may not reflect average preferences. Second, in the case where the members of a cooperative have common preference …
Persistent link: https://www.econbiz.de/10013219182
Several authors suggest that trust is an important determinant of cooperation between strangers in a society, and … therefore of performance of social institutions. We argue that trust should be particularly important for the performance of … large organizations. In a cross-section of countries, evidence on government performance, participation in civic and …
Persistent link: https://www.econbiz.de/10014222386
Central banks have evolved for close to four centuries. This paper argues that for two centuries central banks caught up to the strategies followed by the leading central banks of the era; the Bank of England in the eighteenth and nineteenth centuries and the Federal Reserve in the twentieth...
Persistent link: https://www.econbiz.de/10012947026
Across the social sciences, a key question is how societies manage to enforce cooperative behavior in social dilemmas …, cooperation appears to be enforced through universal moral values; internalized guilt; altruistic punishment; and an apparent rise …
Persistent link: https://www.econbiz.de/10012954472
We develop an informational theory of dictatorship. Dictators survive not because of their use of force or ideology but because they convince the public—rightly or wrongly—that they are competent. Citizens do not observe the dictator's type but infer it from signals inherent in their living...
Persistent link: https://www.econbiz.de/10013023344
A novel experiment is used to show that the effect of a policy on the level of cooperation is greater when it is chosen …
Persistent link: https://www.econbiz.de/10013235634
overall catch quota to a voluntary cooperative, with the remainder exploited as a commons by those choosing to fish …
Persistent link: https://www.econbiz.de/10013138469
The recent financial crisis 2007-2009 was the longest and the deepest recession since the Great Depression of 1930. The crisis that originated in subprime mortgage markets was spread and amplified through globalised financial markets and resulted in severe debt crises in several European...
Persistent link: https://www.econbiz.de/10013120322