We compare the number of active firms, i.e. the number of firms producing a positive quantity, in equilibrium across four different models of oligopoly: Cournot and Bertrand with homogeneous or differentiated goods. We concentrate on the linear demand structure with constant marginal but asymmetric costs. (With symmetric costs, the results trivialize to all firms active or all firms inactive.) ...

This paper examines the incentives that generation firms have in restructured electricity markets for supporting long-term transmission investments. In particular, we study whether generation firms, which arguably play a dominant role in the restructured electricity markets, have the incentives to fund or support social-welfare-improving transmission investments. We examine this question and ex...

We formulate and test a hypothesis for the dramatic restructuring that the plant breeding and seed industry has recently undergone: the reorganization can be explained in part by the desire to exploit complementarities between intellectual assets needed to create genetically modified organisms. This hypothesis is tested using data on agricultural biotechnology patents, notices for field tests o...

This paper builds upon a view of economic organizations as problem-solving arrangements and presents a simple model of adaptive problem-solving driven by trial-and-error learning and collective selection. Institutional structures and, in particular, their degree of decentralization, determine which solutions are tried out and undergo selection. It is shown that if the design problem at hand is ...

Controlling large swarms of robotic agents has many challenges including, but not limited to, computational complexity due to the number of agents, uncertainty in the functionality of each agent in the swarm, and uncertainty in the swarm’s configuration. This work generalizes the swarm state using Random Finite Set (RFS) theory and solves the control problem using model predictive control which...

of propositions This concept revolves around organizations and the differences of their embeddedness in the macro patterns of routines (economic policy regimes), which in turn may differentially provide them – and the system as a whole – with ‘procedural rationality’ in dealing with identified problems in their relevant complex environment. Regularities of interdependence are specified between ...

This paper examines a three-stage model of divisionalization where, first, two parent firms create independent units, second, the parent firms allocate cost reduction levels over these units, and third, the resulting units compete in a Cournot market given their current costs of production. The introduction of the cost reduction phase is shown to reduce the incentives toward divisionalization s...

This paper concentrates on the question of organizational design under asymmetric information. The design of the organization has two parts: first, communication channels between the members should be established and second, the tasks should be allocated to the party that performs it in the most efficient way. We show that if the decisions are delegated to the agents, the agent’s decisions reve...