Bloom et al (2012) 'The organization of firms across countries, Quarterly Journal of Economics) has found...

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Bloom et al (2012) 'The organization of firms across countries, Quarterly Journal of Economics) has found that delegation is more likely in firms that are located in countries in which the management can trust workers. More recently, Meagher and Wait (2015) have found that delegation of decision-making authority is more likely when the workers trust the management. In the context of the infinitely repeated game studied in class, briefly discussion both results. Bloom et al (2012) 'The organization of firms across countries, Quarterly Journal of Economics) has found that delegation is more likely in firms that are located in countries in which the management can trust workers. More recently, Meagher and Wait (2015) have found that delegation of decision-making authority is more likely when the workers trust the management. In the context of the infinitely repeated game studied in class, briefly discussion both results.

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As per game theory trust leads to cooperation among employees So if in a country manag... View the full answer