Showing 1 - 10 of 38
We discuss and empirically examine a firm-level equivalent of the ancient problem of "tying the King<92>s hands", namely how to maximize managerial intervention for "good cause", while avoiding intervention for "bad cause". Managers may opportunistically intervene when such intervention produces...</92>
Persistent link: https://www.econbiz.de/10005260608
The notion of distributed knowledge is increasingly often invoked in discussions of economic organization. In particular, the claim that authority is inefficient as a means of coordination in the context of distributed knowledge has become widespread. However, very little analysis has been...
Persistent link: https://www.econbiz.de/10005839242
We discuss the relations between alternative conceptualizations of the market process - neoclassical, Austrian and radical subjectivist/evolutionary - and alternative approaches to economic organization, for example, nexus of contract theory, Williamsonian transaction cost economics and the...
Persistent link: https://www.econbiz.de/10005839249
We outline an Austrian approach to economic organization based on the entrepreneur and the Austrian idea of capital as heterogeneous and time-dimensioned, tow themes associated with Israel Kirzner's contributions. We provide a novel interpretation of capital heterogeneity based on the notion of...
Persistent link: https://www.econbiz.de/10005273118
We analyze a key problem in organization theory and design, namely the potential tension between authority (i.e., the power to make decisions which guide the decisions of another person) and the discretion of employees (i.e., the ability of an agent to control resources including his own human...
Persistent link: https://www.econbiz.de/10005273129
This paper develops a property rights-based view of strategy (the “PRV”). A property right (or economic right) is an individual’s net valuation, in expected terms, of the ability to directly consume the services of an asset (including, e.g., a monopoly position) or consume it indirectly...
Persistent link: https://www.econbiz.de/10005273158
We discuss the notion of ownership in economics, taking our point of departure in the Grossman-Hart-Moore property rights approach. We criticize the exclusive identification of ownership with residual rights to control in this approach, and argue that economic organization may be rendered...
Persistent link: https://www.econbiz.de/10005627344
Many economists, including Austrian economists, have argued that the market process is essentially an experimental process. We briefly try to clarify this conceptualization, and then argue that we may understand the firm in much the same light. A basic view of the firm as an experimental entity...
Persistent link: https://www.econbiz.de/10005627351
Recent work links entrepreneurship to the economic theory of firm using the Knightian concept of entrepreneurship as judgment. When judgment is complementary to other assets, and these assets or their services are traded in well-functioning markets, it makes sense for entrepreneurs to hire labor...
Persistent link: https://www.econbiz.de/10005627380
This paper develops a property rights perspective on the nature of the firm. The basic idea is that learning by doing in production and coordination stem from experience in production and that user rights over productive assets are necessary in order to accumulate the experience needed to...
Persistent link: https://www.econbiz.de/10005839217