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How does opportunistic behavior influence firm size?: An evolutionary approach to organizational behavior
Institut für Institutionelle Ökonomik und Innovationsökonomik, Universität Bremen.
Department of Environmental Science and Policy, University of California Davis.
Department of Anthropology, University of California.
Stockholm University, Faculty of Humanities, Centre for the Study of Cultural Evolution.
2011 (English)In: Journal of Institutional Economics, ISSN 1744-1374, E-ISSN 1744-1382, no 7, 1-21 p.Article in journal (Refereed) Published
Abstract [en]

This paper relates firm size and opportunism by showing that, given certain behavioural dispositions of humans, the size of a profit-maximizing firm can be determined by cognitive aspects underlying firm-internal cultural transmission processes. We argue that what firms do better than markets – besides economizing on transaction costs – is to establish a cooperative regime among its employees that keeps in check opportunism. A model depicts the outstanding role of the entrepreneur or business leader in firm-internal socialization processes and the evolution of corporate cultures. We show that high opportunism-related costs are a reason for keeping firms’ size small.

Place, publisher, year, edition, pages
2011. no 7, 1-21 p.
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-65971DOI: 10.1017/S1744137410000123OAI: oai:DiVA.org:su-65971DiVA: diva2:479741
Available from: 2013-01-18 Created: 2011-12-16 Last updated: 2017-12-08Bibliographically approved

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CiteExportLink to record
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Citation style
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  • de-DE
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Output format
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