Is the firm an individual?
Article Abstract:
Whether the firm is an individual is central to any theory of organization. This question is reviewed in the context of new institutionalist economics, and considers three new institutionalist theories that try, but fail to support the firm as individual hypothesis. Marx/Hart's concept of property rights and Coase/williamson's idea of transaction costs doe not substantiate the market/firm dichotomy. Also Hayek's constructionist view presents the firm as a designed order. A 'consented goal' is suggested as a useful base on which to build the firm as individual thesis.
Publication Name: Cambridge Journal of Economics
Subject: Economics
ISSN: 0309-166X
Year: 1997
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Organizations versus institutions
Article Abstract:
There are differences between organizations and institutions and their economic impact. Organizations include companies, households and states and have goals and preferences. Institutions involves rules and regulations. Organization theory should be separated from theories related to institutions. Both institutions and organizations are needed to understand how individual agents behave, but there are theoretical benefits from separating the two concepts.
Publication Name: Journal of Institutional & Theoretical Economics
Subject: Economics
ISSN: 0932-4569
Year: 1995
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