Vous consultezAgency and the Pace of Adoption of New Techniques

Premières lignes

This paper is an exploration of how financial contracting can determine the pace of technical change in modern, developed economies. An important characteristic of such economies is that most economic activity takes place within large, complex organizations where the interests of the individuals who make them up are very often in conflict with one another. One of the most important of such misalignments...

PLAN DE L'ARTICLE

• Introduction
• The Model
• A new technique has been adopted
• A new technique has been announced
• An old technique is in place and a new technique has not been announced
  • Announced new technique induces entrenchment
  • Announced new technique induces maximum rent extraction
• The incentive to invest
• Conclusions