In even the most market-oriented economies, most economic transactions occur not in markets but inside managed organizations, particularly business firms. Organizational economics seeks to understand the nature and workings of such organizations and their impact on economic performance. This...

When economists have considered organizations, much attention has focused on the boundary of the firm, rather than its internal structures and processes. In contrast, this essay sketches three approaches to the economic theory of internal organization - one substantially developed, another...

We critically review the emerging literature in Organizational and Personnel Economics concerning the role of managers and management practices. Our focus is on the middle managers who populate the hierarchies between top executives and front-line employees. We are especially concerned with...