The Time and Budget Constraints of the Firm

Bolton, P.;Dewatripont, M.
(1995) 9th Annual Congress of the European-Economic-Association — Location: MAASTRICHT(Netherlands) (3.September.1994)

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  • Bolton, P.
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  • Dewatripont, M.
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Abstract
This short paper surveys some recent research on the internal organization of firms, with an emphasis on task allocation and synchronization. It focuses on an organization facing no incentive problems but time constraints and costs of communication. It highlights two motives for communication: concern for delay and concern for throughput. It also considers the interaction between the time and budget constraints of the firm and its implication for organization design.
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Bolton, P., & Dewatripont, M. (1995). The Time and Budget Constraints of the Firm. European Economic Review, 39(3-4), 691-699. https://doi.org/10.1016/0014-2921(94)00076-C (Original work published 1995)