Productivity and credibility in industry equilibrium

A-Tier
Journal: RAND Journal of Economics
Year: 2019
Volume: 50
Issue: 1
Pages: 121-146

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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.

Technical Details

RePEc Handle
repec:bla:randje:v:50:y:2019:i:1:p:121-146
Journal Field
Industrial Organization
Author Count
1
Added to Database
2026-01-29