search query: @author Hennart, J. / total: 3
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| Author: | Hennart, J. |
| Title: | Explaining the swollen middle: why most transactions are a mix of "market" and "hierarchy" |
| Journal: | Organization Science
1993 : NOV, VOL. 4:4, p. 529-547 |
| Index terms: | TRANSACTION COSTS INCENTIVES ORGANIZATIONS |
| Language: | eng |
| Abstract: | The paper focuses on the enforcement properties of prices and hierarchy. controls individuals directly by constraining their behavior (by imposing behavior constraints) while prices do it indirectly by measuring their outputs (through price constraints). Under hierarchy, individuals receive a salary to do as told, while self-employed individuals governed by the price system are rewarded on the basis of their output. The paper shows that cheating and shirking costs increase and by more than proportionately as one concentrates in either pure price or behavior constraints. |
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