Incentives, Contracts, and Markets: A General Equilibrium Theory of Firms Export

@article{citeulike:3824170, abstract = {This paper takes steps toward integrating firm theory in the spirit of Alchian and Demsetz (1972) and Grossman and Hart (1986), contract theory in the spirit of Holmstrom (1979), and general equilibrium theory in the spirit of Arrow and Debreu (1954) and McKenzie (1959). In the model presented here, the set of firms that form and the contractual arrangements that appear, the assignments of agents to firms, the prices faced by firms for inputs and outputs, and the incentives to agents are all determined endogenously at equilibrium. Agents choose consumption2014but they also choose which firms to join, which roles to occupy in those firms, and which actions to take in those roles. Agents interact anonymously with the (large) market, but strategically within the (small) firms they join. The model accommodates moral hazard, adverse selection, signaling, and insurance. Equilibria may be Pareto ranked.}, address = {Dept. of Economics, University of California, Los Angeles, Los Angeles, CA 90095, U.S.A.; zame@econ.ucla.edu}, author = {Zame, William R.}, citeulike-article-id = {3824170}, citeulike-linkout-0 = {http://dx.doi.org/10.1111/j.1468-0262.2007.00799.x}, citeulike-linkout-1 = {http://www3.interscience.wiley.com/cgi-bin/abstract/118482614/ABSTRACT}, doi = {10.1111/j.1468-0262.2007.00799.x}, journal = {Econometrica}, keywords = {agency, contract, incentive, microeconomic\_theory}, number = {5}, pages = {1453--1500}, posted-at = {2008-12-26 07:51:14}, priority = {3}, title = {Incentives, Contracts, and Markets: A General Equilibrium Theory of Firms}, url = {http://dx.doi.org/10.1111/j.1468-0262.2007.00799.x}, volume = {75}, year = {2007} }

TY - JOUR ID - citeulike:3824170 L3 - citeulike-article-id:3824170 N2 - This paper takes steps toward integrating firm theory in the spirit of Alchian and Demsetz (1972) and Grossman and Hart (1986), contract theory in the spirit of Holmstrom (1979), and general equilibrium theory in the spirit of Arrow and Debreu (1954) and McKenzie (1959). In the model presented here, the set of firms that form and the contractual arrangements that appear, the assignments of agents to firms, the prices faced by firms for inputs and outputs, and the incentives to agents are all determined endogenously at equilibrium. Agents choose consumption2014but they also choose which firms to join, which roles to occupy in those firms, and which actions to take in those roles. Agents interact anonymously with the (large) market, but strategically within the (small) firms they join. The model accommodates moral hazard, adverse selection, signaling, and insurance. Equilibria may be Pareto ranked. IS - 5 JF - Econometrica AD - Dept. of Economics, University of California, Los Angeles, Los Angeles, CA 90095, U.S.A.; zame@econ.ucla.edu EP - 1500 TI - Incentives, Contracts, and Markets: A General Equilibrium Theory of Firms VL - 75 SP - 1453 KW - agency KW - contract KW - incentive KW - microeconomic_theory AU - Zame, William PY - 2007/// UR - http://dx.doi.org/10.1111/j.1468-0262.2007.00799.x ER -