Research Questions
Wednesday, January 1, 2003

Emmanuel Raynaud

AgroParisTech

Emmanuel Raynaud

The Analysis of Complementarities in Contractual and Organizational Design

Abstract

The aim of this workshop is to analyze how the recent analysis of complementarities à la Milgrom and Roberts (1990), Holmström and Milgrom (1994), can contributes to a better understanding of organizational and contractual design. This literature highlights the fact that economic organizations should be analyzed as a system of coherent attributes. In the workshop, I will develop the economics of complementarity, focusing first on the mathematical concept of supermodularity and then developing its applications for the economics of organization. Empirical analysis trying to assess the extent of complementarities among attributes will also be presented with a particular emphasis on estimation challenges and econometric solutions.

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