Stephen Lin, Catherine Thomas, Arturs Kalnins, 22 January 2020

Why do so many transactions take place within firms rather than between independent agents via markets? This column sheds new light on this question by analysing hotel chains’ decisions about whether to outsource management to independent franchisees. Properties with the lowest and the highest occupancy rates tend to be managed by franchisees, at arm's length from the hotel chain. This variation in organisational form is consistent with the authors’ model in which the incentives embodied in management contracts vary with property-level productivity. 

Marcio Cruz, Maurizio Bussolo, Leonardo Iacovone, 01 December 2016

A recent literature has shown that successful firms have in common a deliberate and active management of their internal structure. This column uses an export promotion programme in Brazil that provided consulting on management and production practices to small and medium enterprises to examine whether policies can prompt and support firm reorganisations. It finds that firms participating in the programme were 20% more likely to add a new layer of workers with more specialised skills and competencies.

Laura Alfaro, Paola Conconi, Harald Fadinger, Patrick Legros, Andrew Newman, 02 December 2012

Increasingly, people are pointing the finger of blame for economic woe at large firms. This column argues that organisation design is often affected by government trade policy. If firm organisation design has implications for consumer welfare (in terms of prices and quality of product), evidence suggests that governments should make sure that in future, trade policy and corporate governance policy are more complementary.

Vox Talks

Events

CEPR Policy Research