Asexual reproduction of firms

Management scholars love to study corporate spin-offs. Every now and then companies decide to split off parts of their business or pursue new ideas by founding a new legal entity. Such an organizational split is supposed to be advantageous when it comes to managing certain types of innovative ventures. Google’s recent reorganization is an example that the large conglomerate of more or less independently operating companies seems to become more popular again in the tech world. Continue reading Asexual reproduction of firms

Hurry up and wait

In a previous post I argued that a lot more work needs to be done by economists to understand the implications of dynamic strategic incentives. Actually, this was an act of shameless self-promotion. Because I have written a paper* together with Philipp Schmidt-Dengler and Yuya Takahashi on strategic interaction and how it can shape the evolution of industries over time. Continue reading Hurry up and wait