KOPS - The Institutional Repository of the University of Konstanz

Firm Foundations and Human Capital Investments : the O-Ring Approach to Organizational Equilibrium in an Emerging Industry

Aufgrund von Vorbereitungen auf eine neue Version von KOPS, können derzeit keine Publikationen eingereicht werden. (Due to preparations for a new version of KOPS, no publications can be submitted currently.)

Firm Foundations and Human Capital Investments : the O-Ring Approach to Organizational Equilibrium in an Emerging Industry

Cite This

Files in this item

Checksum: MD5:0df1985efc6a339a1e774db0738e1956

FABEL, Oliver, 2003. Firm Foundations and Human Capital Investments : the O-Ring Approach to Organizational Equilibrium in an Emerging Industry

@techreport{Fabel2003Found-12189, series={Diskussionspapiere der DFG-Forschergruppe Heterogene Arbeit}, title={Firm Foundations and Human Capital Investments : the O-Ring Approach to Organizational Equilibrium in an Emerging Industry}, year={2003}, number={03/02}, author={Fabel, Oliver} }

<rdf:RDF xmlns:dcterms="http://purl.org/dc/terms/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:rdf="http://www.w3.org/1999/02/22-rdf-syntax-ns#" xmlns:bibo="http://purl.org/ontology/bibo/" xmlns:dspace="http://digital-repositories.org/ontologies/dspace/0.1.0#" xmlns:foaf="http://xmlns.com/foaf/0.1/" xmlns:void="http://rdfs.org/ns/void#" xmlns:xsd="http://www.w3.org/2001/XMLSchema#" > <rdf:Description rdf:about="https://kops.uni-konstanz.de/rdf/resource/123456789/12189"> <dcterms:available rdf:datatype="http://www.w3.org/2001/XMLSchema#dateTime">2011-03-25T09:43:19Z</dcterms:available> <bibo:uri rdf:resource="http://kops.uni-konstanz.de/handle/123456789/12189"/> <dc:format>application/pdf</dc:format> <dcterms:hasPart rdf:resource="https://kops.uni-konstanz.de/bitstream/123456789/12189/1/03-02.pdf"/> <foaf:homepage rdf:resource="http://localhost:8080/jspui"/> <void:sparqlEndpoint rdf:resource="http://localhost/fuseki/dspace/sparql"/> <dc:contributor>Fabel, Oliver</dc:contributor> <dspace:hasBitstream rdf:resource="https://kops.uni-konstanz.de/bitstream/123456789/12189/1/03-02.pdf"/> <dcterms:abstract xml:lang="eng">The current analysis introduces human capital investments which as all other investment projects must be carried out given ex-ante uncertain returns. This return uncertainty reflects that particular ex-post ability realizations may or may not induce the possibility to engage in profitable entrepreneurial activity. Managed firms which recruit randomly while offering a certain wage-income cannot be kept from entering the industry. However, if it is individual beneficial to seek employment in such firms, given that human capital investments are sunk, the resulting industry structure provides less incentives to invest than a purely entrepreneurial industry. While it remains true that entrepreneurial firms if they exist are founded by teams of superior realized abilities, the equilibrium analysis reveals a rather different perspective of the incentive mechanism. Human capital investments are not so much necessary in order to induce entrepreneurial activity. Rather, entrepreneurial activity provides the effective incentives to invest in human capital. This distinction is important to note. Due to the risk-shifting property associated with employment in managed firms, policies directed at maximizing entrepreneurial activities will generally fail to implement an efficient solution. As with every other incentive mechanism, incentive compatibility constitutes a constraint on the possibility to achieve a first-best solution.</dcterms:abstract> <dc:creator>Fabel, Oliver</dc:creator> <dc:language>eng</dc:language> <dc:rights>terms-of-use</dc:rights> <dcterms:title>Firm Foundations and Human Capital Investments : the O-Ring Approach to Organizational Equilibrium in an Emerging Industry</dcterms:title> <dcterms:rights rdf:resource="https://rightsstatements.org/page/InC/1.0/"/> <dcterms:issued>2003</dcterms:issued> <dspace:isPartOfCollection rdf:resource="https://kops.uni-konstanz.de/rdf/resource/123456789/46"/> <dc:date rdf:datatype="http://www.w3.org/2001/XMLSchema#dateTime">2011-03-25T09:43:19Z</dc:date> <dcterms:isPartOf rdf:resource="https://kops.uni-konstanz.de/rdf/resource/123456789/46"/> </rdf:Description> </rdf:RDF>

Downloads since Oct 1, 2014 (Information about access statistics)

03-02.pdf 520

This item appears in the following Collection(s)

Search KOPS


Browse

My Account