Coase meets Tarski: New Insights from Coase's Theory of the Firm

Tomoo Kikuch (), Kazuo Nishimura and John Stachurski ()
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Tomoo Kikuch: Department of Economics, National University of Singapore

No 828, KIER Working Papers from Kyoto University, Institute of Economic Research

Abstract: This paper formulates a model embedding the key ideas from Ronald Coase’s famous essay on the theory of the firm in a simple competitive equilibrium setting with anarbitrary number of firms. The model studies the structure of production when transaction costs and diminishing returns to management are treated as given. In addition to recovering Coase’s main insights as equilibrium conditions, the model yields many new predictions on prices, firm boundaries and division of the value chain.

Keywords: Transaction costs; vertical integration; production chains (search for similar items in EconPapers)
JEL-codes: D02 D21 L11 L23 (search for similar items in EconPapers)
Date: 2012-08
New Economics Papers: this item is included in nep-bec, nep-com and nep-mic
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:kyo:wpaper:828

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