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Attitude change in arbitrarily large organizations
Costa, Luís Almeida; Matos, João Amaro deThe alignment of collective goals and individual behavior has been extensively studied by economists under a principal-agent framework. Two main solutions have been presented: explicit incentive contracts and monitoring. These solutions correspond to changes in the objective situation faced by individuals. However, an extensive literature in social psychology provides evidence that behavior is influenced, not o...
Share the fame or share the blame? The reputational implications of partnerships
Costa, Luís Almeida; Vasconcelos, LuísWe use an adverse selection model to study the dynamics of firms' reputations when firms implement joint projects. We show that in contrast with projects implemented by a single firm, in the case of joint projects a firm's reputation does not necessarily increase following a success and does not necessarily decrease following a failure. We also study how reputation considerations affect firms ' decisions to p...
The strategic deployment of quality-improvement innovations
Costa, Luis Almeida; Dierickx, IngmarJournal of Business, Vol. 78 Issue 3, p1049-1072 ; While most of the literature on innovation has been concerned with the firm's research and development decisions, this paper addresses the question of how to deploy an innovation to fully realize its rent potential. More specifically, we use a game theoretic model to study the deployment of quality-improving innovation, i.e., innovations that enhance the quali...
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