Inside vs. Outside Ownership: A Political Theory of the Firm

If contracting within the firm is incomplete, managers will expend resources on trying to appropriate a share of the surplus that is generated. We show that outside ownership may alleviate the deadweight losses associated with such costly distributional conflict, even if all it does is add another level of conflict. In case managers have to be provided with incentives to make firm-specific investments, there is a tradeoff between minimizing rent-seeking costs and maximizing output. This suggests, among other things, an explanation of why some firms areorganized as partnerships and others as stock corporations.

Conflict Resolution under Asymmetric Information

We consider mechanisms for resolving conflicts between two agents who are uncertain about each other's fighting potential. Applications include international conflict, litigation, and elections. Even though only a peaceful agreement avoids a loss of resources, if this loss is small enough, then any mechanism must assign a positive probability of conflict. We show how the likelihood of conflict outbreak depends on the distribution of power between the agents and their information about each other.conflict; asymmetric information

Foreign direct investment and the political economy of protection

Trade Barriers;Foreign Investment

Distributional Conflict in Organizations

Hierarchy can function as an instrument to channel influence activities or power struggles in organizations. Contrary to what has frequently been argued, we show that multi-divisional organizations may involve lower influence costs than single-tier organizations, even though they offer more scope for organizational conflict and have more executives that can be influenced. These benefits derive from two effects. First, part of the conflict in multi-divisional organizations takes place on the division level, where a small number of agents fight over only a fraction of the overall prize. Second, by grouping agents into common divisions, multi divisional organizations create free-rider problems in rent-seeking. We apply our framework to divestitures and the transition from the U- to the M-form by US corporations in the 1920s

Pathways for the Development of Future Intelligent Distribution Grids

The next decade will bring several technical and organisational challenges to the electrical distribution grids, which are becoming an important pillar of the energy transition. Distribution system operators will play a crucial role and thus need to find innovative solutions that will prepare them for these changes. Allowing the variations in the size, organisation and technical characteristics of distribution grids, this paper presents the pathways for the distribution system operators developed within the scope of the UNITED-GRID project. These were developed in close cooperation with distribution grids and demonstration sites in the Netherlands, France and Sweden. Investment decision tools based on future scenarios and future-readiness assessment form the first step to steer the distribution system operators towards the necessary technical and digital innovations that increase the observability and controllability of the grid. Secondly, the guidelines present new types of business models that can be integrated into the operators’ portfolios. Thirdly, a workshop methodology is proposed to define the new internal requirements that make distribution system operators more agile to face the fast impacts of the energy transition. Case studies from the demonstration sites are used as examples in the paper

Ascertainment of occupational histories in the working population: The occupational history calendar approach

Background Self-reported occupational histories are an important means for collecting historical data in epidemiological studies. An occupational history calendar (OHC) has been developed for use alongside a national occupational hazard surveillance tool. This study presents the systematic development of the OHC and compares work histories collected via this calendar to those collected via a traditional questionnaire. Methods The paper describes the systematic development of an OHC for use in the general working population. A comparison of data quality and recall was undertaken in 51 participants where both tools were administered. Results TheOHCenhanced job recall compared with the traditional questionnaire. Good agreement in the data captured by both tools was observed, with the exception of hazard exposures. Conclusions A calendar approach is suitable for collecting occupational histories from the general working population. Despite enhancing job recall the OHC approach has some shortcomings outweighing this advantage in large-scale population surveillance

Distributional Conflict in Organizations

Hierarchy can function as an instrument to channel influence activities or power struggles in organizations. Contrary to what has frequently been argued, we show that multi-divisional organizations may involve lower influence costs than single-tier organizations, even though they offer more scope for organizational conflict and have more executives that can be influenced. These benefits derive from two effects. First, part of the conflict in multi-divisional organizations takes place on the division level, where a small number of agents fight over only a fraction of the overall prize. Second, by grouping agents into common divisions, multi divisional organizations create free-rider problems in rent-seeking. We apply our framework to divestitures and the transition from the U- to the M-form by US corporations in the 1920s

Is Entrepreneurial Success Predictable? An Ex-Ante Analysis of the Character-Based Approach

This paper empirically analyzes whether the character-based approach, which focuses on the personality structure and the human capital of business founders, allows prediction of entrepreneurial success. A unique data set is used consisting of 414 persons whose personal characteristics were analyzed by different methods, namely an one-day assessment center (AC) and a standardized questionnaire, before they launched their business. Results are partly unexpected and weaker than previous ex-post findings: first, we found correlations between the AC data and the questionnaire in one subgroup only. Second, the predictive power of the AC data is slightly better than that of the questionnaire, but lower than expected in theory. Interestingly, for those subgroups where the AC data have low predictive power, the questionnaire does better. Third, when success is measured in terms of employees hired, the character-based approach is a poor predictor. Copyright 2008 The Authors.