Strategic Debt with Multi-Task Technologies

Posted: 14 Sep 2000

See all articles by Alberto Dalmazzo

Alberto Dalmazzo

University of Siena - Department of Economics


In this paper it is shown that when employees have ex post bargaining power, the entrepreneur will try to avoid technologies that are based on a large number of complementary tasks. We demonstrate that the entrepreneur can shelter profit from the employees' rent-seeking behaviour by raising debt. Moreover, the strategic use of debt financing can favour the adoption of technologies that rely on synergies.

JEL Classification: G31, J30, L20

Suggested Citation

Dalmazzo, Alberto, Strategic Debt with Multi-Task Technologies. Available at SSRN:

Alberto Dalmazzo (Contact Author)

University of Siena - Department of Economics ( email )

Piazza S. Francesco, 7
Siena, I-53100
+39 0577 232 697 (Phone)

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