We use an economic model to study the optimal management of know-how, defined here as employee-generated information about the performance of specific methods or solutions to problems that may or will recur in the future. We derive three main results. First, information about successes is...

This paper develops a theory of the firm in which a firm's centralized asset ownership and low-powered incentives give a manager 'interpersonal authority' over employees (in a world with differing priors). The paper derives such interpersonal authority as an equilibrium phenomenon. One key...

This paper addresses primarily two questions. First, when or why should a company's strategy be developed by its CEO versus by some outside analyst or other insider? Second, how does strategy, properly defined, interact with vision (in the sense of a strong belief) about various decisions? In...

What makes a decision strategic? When is strategy most important? This paper studies the structure and value of strategy (in its everyday sense), starting from a (functional) definition of strategy as ‘the smallest set of (core) choices to optimally guide the other choices.' This definition...