Productivity and credibility in industry equilibrium

• 成果类型: Article
• 署名作者: Powell, Michael
• 署名单位: Northwestern University
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12264
• 发表日期: 2019
• 页码: 121-146
• 关键词: Relational contracts; misallocation; DYNAMICS; FIRMS; ORGANIZATION; constraints; distortions; allocation; OWNERSHIP; finance

摘要

I analyze a model of production in a competitive environment with heterogeneous firms. Efficient production requires individuals within the organization to take noncontractible actions for which rewards must be informally promised rather than contractually assured. The credibility of such promises originates from a firm's future competitive rents. In equilibrium, heterogeneous firms are heterogeneously constrained, and competitive rents are inefficiently concentrated at the top. I explore several policy and empirical implications of this result.