Analyse numerique by Temam R

By Temam R

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By Temam R

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3) except for the parameterized coefficients v(r) and m(r). To facilitate mathematical derivation, let v and m be twice continuously differentiable. To ensure unique interior solution, we assume vv r 0, vu(0)W0, vu(1)o0, mv r 0, mu(0)W0, and mu(1)o0. The concavity of v and m also makes it suboptimal for the owner-manager and the workers to share authority and exchange information. Now we ask how increased allocation of decision authority affects the workers’ incentives to acquire skills. Consider the S-organization as before.

When Assumption 1 is violated, it could be efficient to assign both decision problems to one worker and let him alone invest substantially in skills. But this case is not of much interest in light of our motivation because in such asymmetric equilibrium, there is no trade-off in specialization and multiskilling. 8 Assumption 2 assumes perfect cost substitution. By imposing Assumption 2, we can simplify our comparison of specialization and multiskilling in determining bargaining power and human capital investment.

SN\fig where N is the set of all agents including the owner and the workers, S is an arbitrary subset, and Y(S, X) is the expected output by the subgroup S given the investment profile X. 10. It may be often more realistic to assume Edgeworth complementarity between x1 and x2 in the S-organization. Most qualitative results in this chapter hold for such a case. See Owan (1999) for discussions. 11. As we made clear earlier, the current assumptions do not ensure that either the S-organization or the M-organization is efficient.

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