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Employment relationships in knowledge‐based firms: Who should have power?
Author(s) -
Panico Claudio
Publication year - 2009
Publication title -
european management review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.784
H-Index - 32
eISSN - 1740-4762
pISSN - 1740-4754
DOI - 10.1057/emr.2009.9
Subject(s) - negotiation , bargaining power , position (finance) , ex ante , business , affect (linguistics) , power (physics) , software deployment , set (abstract data type) , control (management) , microeconomics , labour economics , industrial organization , economics , management , finance , sociology , computer science , political science , law , macroeconomics , operating system , programming language , physics , communication , quantum mechanics
This paper investigates the relationship between an employer and a knowledge worker when an arrangement is set ex‐ante to affect the relative bargaining position in the ex‐post negotiation. Specifically, we study what drives the employer's decision to endow the worker with the rights to control the deployment of valuable resources when this choice affects the worker's bargaining power in the negotiation. Our analysis highlights how different informational asymmetries impact on the employer's problem of designing the employment contract to be offered to the worker.