This article discusses the limits of a purely transaction cost explanation of the existence of the firm by pointing to additional factors. A simple heuristic model shows that firm-specific learning effects can overcome the costs of monitoring employees, and explain the existence of the firm even...

The three core Darwinian principles of variety, inheritance and selection are found in Nelson and Winter?'s Evolutionary Theory of Economic Change (1982). Is the application of these core Darwinian principles purely analogical, or does it also relate to ontological communalities between social...