Asset Details
Do you wish to reserve the book?
The “Value Principle” in Management Practices, Organizational Design, and Industrial Organization
Hey, we have placed the reservation for you!
By the way, why not check out events that you can attend while you pick your title.
Oops! Something went wrong.
Looks like we were not able to place the reservation. Kindly try again later.
Are you sure you want to remove the book from the shelf?
The “Value Principle” in Management Practices, Organizational Design, and Industrial Organization
Do you wish to request the book?
The “Value Principle” in Management Practices, Organizational Design, and Industrial Organization
Please be aware that the book you have requested cannot be checked out. If you would like to checkout this book, you can reserve another copy
We have requested the book for you!
Your request is successful and it will be processed during the Library working hours. Please check the status of your request in My Requests.
Oops! Something went wrong.
Looks like we were not able to place your request. Kindly try again later.
Journal Article
The “Value Principle” in Management Practices, Organizational Design, and Industrial Organization
2025
Overview
The value principle in organizational economics states that the net market value of the goods that a firm sells is a key determinant of its organizational design. We survey and extend some recent developments in the theoretical literature at the nexus of organizational and industrial economics, focusing on this precept as the unifying theme. Under perfect competition, we study how market price influences the use of scarce professional management and the degree of organizational heterogeneity in an industry. In a more general setting, we show how changes in demand influence not only the use of professional management, but also the size and the market power of firms. And we show how prices can affect the internal control structure of firms, sometimes in highly distorted ways. We discuss applications to comparative industrial organization and to technological diffusion.
Publisher
MDPI AG
