A Note on the Optimal Structure of Production

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A Note on the Optimal Structure of Production

Author(s): Frutos, María Ángeles de; Rocha, J.M. da
Publisher: Elsevier
Issued date: 1999
Citation: Journal of Economic Theory. 1999, vol. 89, nº 2, p. 234-246
ISSN: 0022-0531
DOI: 10.1006/jeth.1999.2569
Review: PeerReviewed
Publisher version: http://dx.doi.org/10.1006/jeth.1999.2569
URI: http://hdl.handle.net/10016/4421
Rights: ©Elsevier

Abstract:

We analyze the advantages of centralization and decentralization in industries in which production takes place in several stages and the costs are privately observed by the agents in charge of production. We demonstrate that "informational diseconomies" ari [+]

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