Teamwork Efficiency and Company Size
The BE Journal of Theoretical Economics, Forthcoming
30 Pages Posted: 10 Sep 2013 Last revised: 6 Oct 2015
Date Written: June 19, 2014
We study how ownership structure and management objectives interact in determining the size of the establishment without assuming uncertainty or explicit costs of management. For a general class of production functions, we characterize the optimal establishment size, and we identify the important properties of fundamental functions that allow us to determine how the establishment size will change if management objectives change.
Keywords: team, partnership, effort complementarities, firm size
JEL Classification: D2, J5, L11, D02
Suggested Citation: Suggested Citation