infonet-economy

We study the efficiency of negotiated transfer pricing for solving a bilateral hold-up problem in a multinational enterprise. We show that negotiated transfer pricing will generally not provide incentives for an efficient renegotiation of the initial contract and efficient investments because the divisions possess only one instrument for solving two problems. Either they minimize…

We discuss conditions for the Aubin property of solutions to perturbed cone constrained programs, by using and refining results given in Klatte-Kummer "Nonsmooth Equations in Optimization", Kluwer, 2002. In particular, we show that constraint nondegeneracy and hence uniqueness of the multiplier is necessary for the Aubin property of the critical point map. Moreover, we give…

We show that the optimal asset allocation for an investor depends crucially on the theory with which the investor is modeled. For the same market data and the same client data different theories lead to different portfolios. The market data we consider is standard asset allocation data. The client data is determined by a standard risk profiling question and the theories we apply are…

This article introduces one emergent theoretical perspective from the North American research field of organizational communication that has come to be called “communication constitutes organization“ (CCO). The CCO perspective ascribes to communication a fundamental role in the constitution of organizations: Organizations basically consist of interconnected events of communication.…

This paper develops a model of a cooperative enterprise and compares it to a vertically separated market. In our model of a multi-stage production process, agents can acquire costly knowledge to decrease production costs. Our model shows that the cooperative acquires less non-generalizable knowledge than the market, but more generalizable knowledge if the large member in the…

Most of today’s manufacturing companies are organized in networks. Discussions concerning these networks include the global footprint, but hardly how the sites can be successfully coordinated. Leaning at coordination mechanisms known from team sports, this article provides five tactics of how the network coordination can be done successfully. These include a consequent reassessment…