Marrying in the Cathedral: a Framework for the Analysis of Corporate Governance

Ugo Pagano

Department of Economics University of Siena from Department of Economics, University of Siena

Abstract: The firm can be seen as a centralization of market transactions and as a decentralization of a public ordering which allows the management of joint liabilities. The paper advances the view that the main reason for the firm’s existence is the unification and the internalization of liabilities. From this perspective, Coase's and Fuller's contributions to the theory of the firm can be married within the architecture of Calabresi's Cathedral. Because of specific (dis)investments, fundamental transformations from competition to managed bilateral monopoly take place either in the public or the private sphere and provide an explanation for the ultimate nature of the firm

JEL-codes: D23 D52 K13 K22 (search for similar items in EconPapers)
Date: 2009-09
New Economics Papers: this item is included in nep-law
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Chapter: Marrying in the Cathedral: A Framework for the Analysis of Corporate Governance (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:usi:wpaper:571

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