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 present two new findings based on annual antipsychotic US prescribing data from IMS Health on 2867 psychiatrists who wrote 50 or more prescriptions in 2007. First, many of these psychiatrists have prescription patterns that are statistically significantly different than random draws from...

This essay begins with introductions to the two sides of organizational economics: the economics of internal organization (which focuses on the internal structure and functioning of organizations) and the economic theory of the firm (which focuses on organizations' boundaries and on...

Effective organizations are able not only to coordinate their members on efficient strategies but also to adapt members’ strategies to unforeseen change in an efficient manner. We explore whether part of organizational culture - namely, relational contracts that facilitate both coordi-nation...