Ownership and Power Structure: Together at Last

Laura  Alfaro; Nicholas  Bloom; Paola  Conconi; Harald  Fadinger; Patrick  Legros; Andrew  Newman; Raffaella  Sadun; John  Van Reenen

Article | Vox, CEPR Policy Portal | September 26, 2018

Ownership and Power Structure: Together at Last

by Laura Alfaro, Nicholas Bloom, Paola Conconi, Harald Fadinger, Patrick Legros, Andrew Newman, Raffaella Sadun and John Van Reenen

Abstract

Economists have largely ignored the deep interdependency between integration and delegation. This column describes a new theory of integration and delegation choices aimed at shedding light on how these distinct elements of organizational design interact. Contrary to what is suggested by a naïve one-dimensional approach, the model predicts that delegation and outsourcing should be negatively correlated, a prediction that holds up well when the model is applied to data for thousands of firms across many industries and countries.

Keywords: Power; ownership; organisational design; Economics; Ownership; Organizational Design;

Format: Electronic

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Citation:

Alfaro, Laura, Nicholas Bloom, Paola Conconi, Harald Fadinger, Patrick Legros, Andrew Newman, Raffaella Sadun, and John Van Reenen. "Ownership and Power Structure: Together at Last." Vox, CEPR Policy Portal (September 26, 2018).

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Ownership and Power Structure: Together at Last

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