Cooperative Game Theory of Enterprises (Enterprise Theory Series · Enterprise Theory Translation Series)

Author: [Japan] Aoki Masahiko (Editor)
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 generating 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 improve utility by disrupting cooperation without incurring 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, management, as well as the modes of participation and efficiency in management under different historical, legal, political, and economic conditions. This made the cooperative game theory of the firm a general theoretical framework, serving as a basis for comparative analysis of corporate systems.