EconPapers    
Economics at your fingertips  
 

The Boundaries of the Firm Revisited

Bengt Holmstrom () and John Roberts

Journal of Economic Perspectives, 1998, vol. 12, issue 4, 73-94

Abstract: Both transaction cost-economics and property-rights theories offer explanations of the boundaries of the firm based on ideas of ex post bargaining and holdup. These theories are quite distinct in their empirical predictions, but neither offers a satisfactory account of a large variety of observed practices. The authors discuss a number of such examples, where the boundaries of the firm seem to be determined by factors other than the need to protect investments, and where other mechanisms than the allocation of asset ownership are used to provide investment incentives. These examples indicate the need to enrich their theory of firm boundaries.

JEL-codes: D20 L60 (search for similar items in EconPapers)
Date: 1998
Note: DOI: 10.1257/jep.12.4.73
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (250) Track citations by RSS feed

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/jep.12.4.73 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:jecper:v:12:y:1998:i:4:p:73-94

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

Journal of Economic Perspectives is currently edited by Enrico Moretti

More articles in Journal of Economic Perspectives from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2020-07-14
Handle: RePEc:aea:jecper:v:12:y:1998:i:4:p:73-94