Please use this identifier to cite or link to this item: https://doi.org/10.3982/TE2376
Title: Span of control, transaction costs, and the structure of production chains
Authors: Kikuchi, T. 
Nishimura, K.
Stachurski, J.
Keywords: firm boundaries
fragmentation
production chains
Span of control
Issue Date: 2018
Publisher: Society for Economic Theory
Citation: Kikuchi, T., Nishimura, K., Stachurski, J. (2018). Span of control, transaction costs, and the structure of production chains. Theoretical Economics 13 (2) : 729-760. ScholarBank@NUS Repository. https://doi.org/10.3982/TE2376
Rights: Attribution-NonCommercial 4.0 International
Abstract: This paper builds coordination costs, transaction costs, and other aspects of the theory of the firm into a production chain model with an infinite number of ex ante identical producers. The equilibrium determines prices, allocations of productive tasks across firms, firm sizes, and the number of active firms. These prices and allocations match several stylized facts on firm boundaries, vertical integration, and division of the value chain. Copyright © 2018 The Authors.
Source Title: Theoretical Economics
URI: https://scholarbank.nus.edu.sg/handle/10635/210881
ISSN: 19336837
DOI: 10.3982/TE2376
Rights: Attribution-NonCommercial 4.0 International
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