| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP7222 |
| DP7222 Vanishing Third World Emigrants? | |
| Timothy Hatton; Jeffrey G. Williamson | |
| 发表日期 | 2009-03-15 |
| 出版年 | 2009 |
| 语种 | 英语 |
| 摘要 | We construct a price-theoretic model of firms' integration decisions under perfect competition and study their interplay with consumer demand and welfare. Integration is costly to implement but is effective at coordinating production decisions. The price of output influences the ownership structure chosen: there is an inverted-U relation between the degree of integration and product price. Ownership in turn affects output: integration is more productive than non-integration at low prices, and less productive at high prices. If the managers deciding organizational design have full claim to firm revenues, market equilibrium ownership choices will be second-best efficient. When managers have less than a full claim on profits, however, total welfare may sometimes be increased by a social planner who could force some firms to reorganize. The price mechanism tends to correlate reorganizations across firms and generates external effects of technological shocks: productivity changes in some firms may have little effect on their own organization, while inducing changes of ownership in the rest of the industry. Terms of trade in supplier markets also affect ownership structure; entry of low-cost suppliers may induce reorganizations that raise prices. The model can generate coexistence of different ownership structures, even among ex-ante identical firms. |
| 主题 | Industrial Organization |
| 关键词 | Decision rights Incomplete contracts Integration Ownership Price theory |
| URL | https://cepr.org/publications/dp7222 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/536057 |
| 推荐引用方式 GB/T 7714 | Timothy Hatton,Jeffrey G. Williamson. DP7222 Vanishing Third World Emigrants?. 2009. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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