Cooperative Game Theory of Enterprises

Author: (Japan) Aoki Masahiko / Zheng Jianghuai, etc.
Publisher:
Publish Date: 2005-05-01
Features: Aoki Masahiko established a cooperative game theory of the firm, which views the firm as an alliance formed by shareholders and employees, jointly creating firm-specific resources and forming organizational rent. Through cooperative game theory, they share these resources, achieving an organizational equilibrium. Specifically, if one party in the negotiation threatens to withdraw from the cooperative game as the strongest threat, neither party expects to gain utility improvements by disrupting cooperation without causing losses. The realization of organizational equilibrium simultaneously determines management policies and the internal allocation of organizational rent. Aoki Masahiko discussed and compared the collective bargaining between employees (unions) and shareholders/managers, as well as their participation in management and efficiency, under different historical, legal, political, and economic contexts. This made the cooperative game theory of the firm a general theoretical framework, serving as a basis for comparative analysis of corporate systems.