@techreport{Cordes2006does,
abstract = {This paper relates firm size and opportunism by showing that, given certain behavioral dispositions of humans, the size of a profit-maximizing firm can be determined by cognitive aspects underlying firm-internal cultural transmission processes. We argue that what firms do better than markets  besides economizing on transaction costs  is to establish a cooperative regime among its employees that keeps in check opportunism. A model depicts the outstanding role of the entrepreneur or business leader in firm-internal socialization processes and the evolution of corporate cultures. We show that high opportunism-related costs are a reason for keeping firms size small.},
address = {Jena},
author = {Christian Cordes and Peter J. Richerson and Richard McElreath and Pontus Strimling},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D21; D23; D01; M14; C61; 330; Theory of the Firm; Transaction Cost Economics; Cultural Evolution; Opportunism; Cooperation},
language = {eng},
number = {0618},
publisher = {Max-Planck-Inst. f\"{u}r \"{O}konomik},
title = {How does opportunistic behavior influence firm size?},
type = {Papers on economics and evolution},
url = {http://hdl.handle.net/10419/31856},
year = {2006}
}
