TY  - BOOK
AU  - Acemoglu,Daron
AU  - Aghion,Philippe
AU  - Lelarge,Claire
AU  - Van Reenen,John
AU  - Zilibotti,Fabrizio
ED  - National Bureau of Economic Research.
TI  - Technology, Information and the Decentralization of the Firm
T2  - NBER working paper series
PY  - 2006///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - May 2006; Hardcopy version available to institutional subscribers
N2  - This paper develops a framework to analyze the relationship between the diffusion of new technologies and the decentralization decisions of firms.  Centralized control relies on the information of the principal, which we equate with publicly available information.  However, the manager can use her informational advantage to make choices that are not in the best interest of the principal.  As the available public information about the specific technology increases, the trade-off shifts in favor of centralization.  We show that firms closer to the technological frontier, firms in more heterogeneous environments and younger firms are more likely to choose decentralization.  Using three datasets of French and British firms in the 1990s we report robust correlations consistent with these predictions
UR  - https://www.nber.org/papers/w12206
UR  - http://dx.doi.org/10.3386/w12206
ER  -