The property rights approach to the theory of the firm is the most prominent application of the incomplete contracting paradigm. A central conclusion of the standard model says that joint ownership is suboptimal. In this note, we analyze a modified version of the standard model that is tailored...

We review theory and evidence on corporate diversification, industry structure, and firm strategy from an organizational economics perspective. First, we examine the implications of transaction cost economics (TCE) for diversification decisions. TCE is essentially a theory about the costs of...

This paper identifies and assesses the efficiency of major modes for risk governance in dairy farms in Bulgaria. Firstly, the New Institutional and Transaction Costs Economics is incorporated and a framework for analysis of the governance of natural, market, private, and social (institutional)...

The configuration of industrial enterprises in Romania, in terms of numbers and structure, in relation to their characteristics, mirrors the Romanian economy and society at large, in their chronological development. Marked by the changes in the technological and economic paradigm, by the...

We introduce a new model of the theory of the firm and analyze the distance between two parties, only one of whom has the ability to invent a profitable idea. Although idea sharing between the parties is efficient, the inventor might have an incentive to hide the idea to monopolize its value. We...

The legal profession is one of the most disrupted sectors of the consulting industry today. The rise of Legal Tech, artificial intelligence, big data, machine learning, and, most importantly, blockchain technology is changing the practice of law. The sharing economy and platform companies...

Purpose – The key question addressed in the paper is whether creativity fostering methods increase innovation output in Croatian firms.Design/methodology/approach – By utilizing the Community Innovation Survey 2010 data and propensity score matching methods, we estimate the average treatment...

Modern understanding of the corporation as an integrated system driven by a common goal of profit maximization has brought both economic theory and management practices to a deadlock. Incorrect understanding of the modern corporation's core, as well as inability to adequately assess them, became...

Business groups constitute one of the most prevalent and intriguing modes of organizing and managing economic activities through inter-firm coordination and cooperation. The extensive empirical literature on this phenomenon is focused primarily on presenting cross-sectional evidence, and much...