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The Economic Theory of the Firm: A Generalization
https://doi.org/10.32609/0042-8736-2012-9-41-66
Abstract
The paper deals with development of a general theory of the firm. It
discusses the demand for such a theory, reviews existing approaches to its
generalization, and offers a new variant of general theory of the firm based
on the contract theory. The theory is based on minimization of opportunistic
behaviour determined by the material structure of production (a classification
of ten structural factors is offered). This framework is applied to the analysis
of three boundaries problems (boundaries of the job, boundaries of the unit,
boundaries of the firm) and five integration dilemmas (vertical, horizontal,
functional, related, and conglomerate).
discusses the demand for such a theory, reviews existing approaches to its
generalization, and offers a new variant of general theory of the firm based
on the contract theory. The theory is based on minimization of opportunistic
behaviour determined by the material structure of production (a classification
of ten structural factors is offered). This framework is applied to the analysis
of three boundaries problems (boundaries of the job, boundaries of the unit,
boundaries of the firm) and five integration dilemmas (vertical, horizontal,
functional, related, and conglomerate).
Keywords
theory of the firm,
contract theory,
opportunism,
boundaries of the firm,
structure of the firm,
transaction costs,
agency theory,
specific asset,
property rights
JEL: B41; B52; D02; D21; D23; L24; L25
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For citations:
Storchevoy M. The Economic Theory of the Firm: A Generalization. Voprosy Ekonomiki. 2012;(9):41-66. (In Russ.) https://doi.org/10.32609/0042-8736-2012-9-41-66
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