This paper develops microeconomic foundations for a theory of entrepreneurship and growth, focusing on innovation and opportunity as intermediate linkages between the two. Expanding upon points of tangency between Schumpeter and Coase, the paper argues that transactions costs are the glue that...

This article reexamines economic theories of the firm from a legal perspective. Focusing on the importance of agency authority, it recommends a revision in economic theories of the firm which emphasize agency and transactions costs, contracts, property rights, and employment. A theory of the...

In this paper we present the main developments of the theories of the firm rooted in Coase's [Coase, R.H., 1937. The nature of the firm. Economica, New Series 4, 386-405] seminal article.We show that the two important topics of the nature and boundaries of the firm, as well as the internal...

This paper studies the Grossman-Hart-Moore (GHM) "property rights" approach to the theory of the firm under alternating-owners bargaining. When managers can pursue other occupations whilst negotiating over the division of the gains from cooperation, the GHM results obtain. If taking the best...

This paper studies the Grossman-Hart-Moore (GHM) "property rights" approach to the theory of the firm under alternating-owners bargaining. When managers can pursue other occupations whilst negotiating over the division of the gains from cooperation, the GHM results obtain. If taking the best...

The major additions to the revised edition include new sections or subsections on X-inefficiency, the division of labour and the firm -- both pre and post-1970, not-for-profit firms, cooperatives, mutuals, an outline of Arnold Plant's paper, ``Centralize or Decentralize?'', a discussion of the...

The recent decade has witnessed a strong expansion of work on the firm, both from a capabilities perspective and from a contractual perspective. These two bodies of theories are often thought to be fundamentally different, because their domains of applications are different...

Contract duration as component of contract design has both a transaction cost savings function by mitigating exchange hazards and a strategic value creation function by leveraging knowledge-based resources. Previous studies have not explained the value creation function of contract duration in...