@article{b651cf9956ce423288458000aa456c0d,
title = "Span of control, transaction costs, and the structure of production chains",
abstract = "This paper builds coordination costs, transaction costs, and other aspects of the theory of the firm into a production chain model with an infinite number of ex ante identical producers. The equilibrium determines prices, allocations of productive tasks across firms, firm sizes, and the number of active firms. These prices and allocations match several stylized facts on firm boundaries, vertical integration, and division of the value chain.",
keywords = "Span of control, firm boundaries, fragmentation, production chains",
author = "Tomoo Kikuchi and Kazuo Nishimura and John Stachurski",
note = "Funding Information: Tomoo Kikuchi: spptk@nus.edu.sg Kazuo Nishimura: nishimura@rieb.kobe-u.ac.jp John Stachurski: john.stachurski@anu.edu.au This is a revised version of the 2012 working paper “Coase meets Tarski: New Insights from Coase{\textquoteright}s Theory of the Firm,” KIER Working Paper 828. The authors thank Michal Fabinger, Michihiro Kandori, Debraj Ray, Tom Sargent, Makoto Yano, and Shenghao Zhu for helpful discussions and suggestions. The input of the Co-editor and three anonymous referees is also gratefully acknowledged. Denis Tan, Ngoc Han Huynh Khanh, Chenghan Hou, Qingyin Ma, and Alex Olssen provided excellent research assistance. We received financial support from JSPS Grant-in-Aid for Scientific Research (23000001 and 23330063), Singapore Ministry of Education Academic Research Fund Tier 1 R-122-000-140-112, and ARC Award DP120100321. Funding Information: This is a revised version of the 2012 working paper Coase meets Tarski: New Insights from Coase's Theory of the Firm, KIER Working Paper 828. The authors thank Michal Fabinger, Michihiro Kandori, Debraj Ray, Tom Sargent, Makoto Yano, and Shenghao Zhu for helpful discussions and suggestions. The input of the Co-editor and three anonymous referees is also gratefully acknowledged. Denis Tan, Ngoc Han Huynh Khanh, Chenghan Hou, Qingyin Ma, and Alex Olssen provided excellent research assistance. We received financial support from JSPS Grant-in-Aid for Scientific Research (23000001 and 23330063), Singapore Ministry of Education Academic Research Fund Tier 1 R-122-000-140-112, and ARC Award DP120100321. Publisher Copyright: Copyright {\textcopyright} 2018 The Authors.",
year = "2018",
month = may,
doi = "10.3982/TE2376",
language = "English",
volume = "13",
pages = "729--760",
journal = "Theoretical Economics",
issn = "1555-7561",
publisher = "Society for Economic Theory",
number = "2",
}