Speaker: Shicheng Jiang

Topic:  Rules as Reference Points in Organizations 

Abstract: We consider rules as reference points of agents in organizations. Rules in organizations may be rigid or flexible. Flexible rules allowing more discretion for agents may bring about more benefits ex post or more investment ex ant. Rigid rules could improve ex-post efficiencies by reducing shading cost. In organizations, the more heterogeneous the agents in an organization, the more rigid the rules of the organization, and the higher the proportion of agents with higher output, the more flexible the rules are. This result could explain why large firms or organizations tend to formulate more rigid rules, and small businesses tend to develop flexible rules, and why small businesses usually provide agents with more motivations for innovations relying on talents which requires more discretion than just monetary incentives.

Location:  via Zoom; Room 318

Meeting Time: May. 13th, 2021, 8:30-9:30am CST; May. 12th, 2021, 8:30-9:30pm EST