|
| |
| Cheryl Long and Richard Boylan |
| |
| ''FIRM SIZE AND MONITORING'' |
| ( 2003, Vol. 4 No.34 ) |
| |
| |
| We present a model of optimal monitoring expenditures. For any technology that yields a conventional ``S-shaped''' production function for monitoring, the optimal level of monitoring is shown to be higher in medium-sized firms than in both small and large firms. Further, the interaction between specialization and agency are shown to lead to an ``S-shaped'''' production function. |
| |
| |
| Keywords: |
JEL: D2 - Production and Organizations: General
M1 - Business Administration: General |
| |
| Manuscript Received : Sep 26 2003 | | Manuscript Accepted : Nov 07 2003 |
|
