Resource Allocation and Organizational Form
研究了企业合并后总部集中分配资源与部门经理信息优势之间的权衡，发现向上沟通成本会削弱激励，解释了为何资源分配与部门运营应分离。
We develop a theory of firm scope and structure in which merging two firms allows the integrated firm's top management to allocate resources that are costly to trade. However, information about their use resides with division managers. We show that establishing truthful upward communication raises the cost of inducing managerial effort compared with stand-alone firms. This effect dominates a positive effect on effort driven by competition for the firm's resources. We derive predictions about optimal firm scope and structure. In particular, we show why it is optimal to separate the tasks of allocating resources and running a division.