Abstract In this note, we apply weighted hierarchical games of cooperative game theory to the problem optimal firm size firm. particular, analyze influence production technology on Our note enhances previous approaches using a permission structure with equally strong relationships between predecessor and direct successors.

In this paper we analyze the effects of information leakage on the incentives to innovate in firms. We analyze a situation in which an employee in a firm is inspired with a new idea for a product. In a framework in which Intellectual Property Rights on ideas are absent, we analyze the employee’s decision of whether to disclose the idea within the firm or to form a spin-out. We next look at the ...

This paper uses SSBF data to better understand how the owners of small firms use decisions about legal organization, firm size, capital structure, and owner investment in the firm to manage firm risk. The main findings are: Firms with unlimited liability are smaller, both when measured by assets and number of employees, and tend to be less leveraged than those whose owners limit their personal ...