A THEORY OF FIRM SCOPE

The formal literature on firm boundaries has assumed that ex post conflicts are resolved through bargaining. In reality, parties often simply exercise their decision rights. We develop a model, based on shading, in which the use of authority has a central role. We consider two firms deciding whethe...

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Bibliographic Details
Main Authors: Hart, Oliver, Holmstrom, Bengt
Other Authors: Massachusetts Institute of Technology. Department of Economics
Format: Article
Language:en_US
Published: MIT Press 2010
Online Access:http://hdl.handle.net/1721.1/58806
https://orcid.org/0000-0002-4846-1709

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