| Author: | Hodgson, G. |
| Title: | Competence and contract in the theory of the firm |
| Journal: | Journal of Economic Behavior and Organization
1998 : VOL. 35:2, p. 179-202 |
| Index terms: | ECONOMIC BEHAVIOUR ORGANIZATION COMPANIES |
| Language: | eng |
| Abstract: | The Coase-Williamson response to the question "why do firms exist?" is based on the idea that transaction costs in viable firms are lower than they would be if production was coordinated through the market. The explanatory focus of this argument is on the diminution of costs related to transactions between given individuals. However, this ignores the possibility of activities which are in principle non-contractible, including aspects of the process of production. |
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