We study the determinants of market structure in financial intermediation markets. We establish that the input of intermediation services-information-is always non-excludable (though not necessarily non-rival), and intermediaries cannot establish property rights over it. We show that non-excludability is the main determinant of market structure, and present a theory in which market structure, margins, and employees`
This paper studies quarterly employment flows of approximately 10,000 large U.S. manufacturing establishments. We use establishments` hours-week to construct measures of the deviation between desired and actual employment and then we use these as the state variables upon which units decide their employment adjustments. The main findings are: (i) Microeconomic adjustments functions are non-linear, with
