search query: @author Zilibotti, F. / total: 10
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| Author: | Acemoglu, D. Aghion, P. Zilibotti, F. |
| Title: | Vertical integration and distance to frontier |
| Journal: | Journal of the European Economic Association
2003 : APR-MAY, VOL. 1:2-3, p. 630-638 |
| Index terms: | Innovation Outsourcing Vertical integration |
| Language: | eng |
| Abstract: | A model where the equilibrium organization of firms changes as an economy approaches the world technology frontier is constructed. Owners/managers have to spend time on production and innovation activities in vertically integrated firms, and this creates managerial overload and discourages innovation. Outsourcing of some production activities mitigates the managerial overload, but creates a holdup problem, causing some of the rents of the owners to be dissipated to the supplier. |
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