Entrepreneurship, firm creation, and organizational design
We model the emergence of organization forms in simultaneous bidding for labor services among heterogeneous agents. What distin- guishes our approach from prior work is that occupational choice and job matching are determined simultaneously, so that the opportunity costs of entrepreneurs are accounted for. Equilibrium rms are diverse in size and organization; workers turn out endogenously to be com- plements or substitutes. The organization designs are e¢ cient and maximize complementarity between agents.