Garicano, Luis; Hubbard, Thomas N. - In: Journal of the European Economic Association 1 (2003) 2-3, pp. 495-502
A large theoretical literature focuses on the question: What determines firms' boundaries? Recently, Garicano and Santos and Holmstrom and Milgrom have proposed theories in which firms' boundaries reflect the division of labor across individuals. This paper discusses strategies for generating...