Partner uncertainty and the dynamic boundary of the firm

We develop a new theory of the dynamic boundary of the firm where asset owners may want to change partners ex-post. The model identifies a fundamental trade-off between (i) a “displacement externality” under non-integration, where a partner leaves a relationship even though his benefit is worth less...

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Bibliographic Details
Main Authors: Hellmann, T, Thiele, V
Format: Journal article
Published: American Economic Association 2017