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The Boundaries of the Firm Revisited
Open accessAbstract
Both transaction cost-economics and property-rights theories offer explanations of the boundaries of the firm based on ideas of ex post bargaining and holdup. These theories are quite distinct in their empirical predictions, but neither offers a satisfactory account of a large variety of observed practices. The authors discuss a number of such examples, where the boundaries of the firm seem to be determined by factors other than the need to protect investments, and where other mechanisms than the allocation of asset ownership are used to provide investment incentives. These examples indicate the need to enrich their theory of firm boundaries.
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Cites
Coase, R. H. (1937) · Economica · doi:10.1111/j.1468-0335.1937.tb00002.x · Cited by 23,972
Cited by
Berger, A. N., Miller, N. H., Petersen, M. A., Rajan, R. G., & Stein, J. C. (2005) · Journal of Financial Economics · doi:10.1016/j.jfineco.2004.06.003 · Cited by 1,888
Does Fund Size Erode Mutual Fund Performance? The Role of Liquidity and Organization
Chen, J., Hong, H., Huang, M., & Kubik, J. D. (2004) · American Economic Review · doi:10.1257/0002828043052277 · Cited by 1,430
Down with MNE-centric theories! Market entry and expansion as the bundling of MNE and local assets
Hennart, J.-F. (2009) · Journal of International Business Studies · doi:10.1057/jibs.2009.42 · Cited by 585
Rajan, R. G., Zingales, L., & Kumar, K. B. (1999) · doi:10.2139/ssrn.170349 · Cited by 309
Handley, S. M., & Angst, C. M. (2015) · Strategic Management Journal · doi:10.1002/smj.2300 · Cited by 213
Metadata
- Authors
- Holmström, B., & Roberts, J.
- Venue
- Journal of Economic Perspectives
- Publisher
- American Economic Association
- Published
- 1998-11-01
- Volume
- 12
- Issue
- 4
- Pages
- 73-94
- ISSN
- 0895-3309 (ISSN-L)
- OpenAlex
- W2045962543
- Cited by
- 1,176
- References
- 1
- FWCI
- 76.22
- Type
- journal article
- Language
- en
- Open access
- bronze
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