The 141st meeting jointly organized with International Public Policy Seminar
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Date | 2021.12.17 Fri 13:30 - 15:00 |
How to apply | Send an email to: rmikami@iss.u-tokyo.ac.jp |
Contact | MIKAMI, Institute of Social Science, The University of Tokyo 03-5841-4936 |
The Osaka Workshop on Economics of Institutions and Organizations, OEIO, meets every month to exchange research ideas on institutional and organizational economics. Participants include both people specialized in theoretical research and those in empirical research. Topics of meetings might be about microeconomic theory, macroeconomic theory, or economic history..., whatever on institutional and organizational economics.
Date: Friday, December 17, 2021 - 13:30 to 15:00
Venue: Will be held online
Applications: (mail to) rmikami@iss.u-tokyo.ac.jp
Presenter： Shingo Ishiguro, Graduate School of Economics, Osaka University
Title: "Relational Contracts and Hierarchies"
Abstract:
We investigate the organizational design of allocating authorities in a dynamic setting in which, due to the lack of verifiable information, trading parties must rely on relational contracts via long-term relationships. We then show that optimal organization becomes multi-tier hierarchies in which contracting authorities are delegated over agents as a vertical chain of commands, instead of allocating them in the centralized manner, when parties are sufficiently patient. We also discuss several implications about supplier networks in the automotive industry in Japan and the US.