Arbeitspapier
Competing in Organizations: Firm Heterogeneity and International Trade
This paper develops a theory which investigates how firms’ choice of corporate organization is affecting firm performance and the nature of competition in international markets. We develop a model in which firms’ organisational choices determine heterogeneity across firms in size and productivity in the same industry. We then incorporate these organisational choices in a Krugman cum Melitz and Ottaviano model of international trade. We show that the toughness of competition in a market depends on who - headquarters or middle managers - have power in firms. Furthermore, we propose two new margins of trade adjustments: the monitoring margin and the organizational margin. International trade may or may not lead to an increase in aggregate productivity of an industry depending on which of these margins dominate. Trade may trigger firms to opt for organizations which encourage the creation of new ideas and which are less well adapt to price and cost competition.
- Language
-
Englisch
- Bibliographic citation
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Series: Munich Discussion Paper ; No. 2007-20
- Classification
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Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Empirical Studies of Trade
Firm Organization and Market Structure
Organizational Behavior; Transaction Costs; Property Rights
- Subject
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international trade with endogenous firm organizations and endogenous toughness of competition
firm heterogeneity
power struggle in the firm
Unternehmensorganisation
Management
Produktivität
Internationaler Wettbewerb
Wirtschaftsmodell
- Event
-
Geistige Schöpfung
- (who)
-
Marin, Dalia
Verdier, Thierry
- Event
-
Veröffentlichung
- (who)
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Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät
- (where)
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München
- (when)
-
2007
- DOI
-
doi:10.5282/ubm/epub.1933
- Handle
- URN
-
urn:nbn:de:bvb:19-epub-1933-3
- Last update
-
10.03.2025, 11:46 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Marin, Dalia
- Verdier, Thierry
- Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät
Time of origin
- 2007