15.08.2019
 The Theory In the Firm Because Governance Structure From Decision To Contract Essay

American Economical Association

The idea of the Organization as Governance Structure: From Choice to Contract Author(s): Oliver E. Williamson

Supply: The Log of Monetary Perspectives, Volume. 16, Number 3 (Summer, 2002), pp. 171-195 Published by: American Economic Affiliation

Stable URL: http://www.jstor.org/stable/3216956

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Record of Economic Perspectives? Amount

16, Quantity 3? Summer time

The

Company

of

Theory

Structure:

Oliver

the

Coming from

E.

Choice

as

to

2002? Web pages

171-195

Governance

Contract

Williamson

to

that organization

matters and that it is susceptible

selections

there

were

economists.

To

be

sure,

analysis

long greeted by skepticism

by

in Market and Control

The

Marshall

were conspicuous

Alfred

exceptions:

in

and

and

(1932), Joseph

Schumpeter

Capitalism, Socialism,

Democracy (1942)

Friedrich Hayek (1945) in his writings in knowledge.

Institutional

economists

like

(1904), Ruben R. Commons

(1934) and Ronald Coase (1937) and

theorists

just like

Robert

Michels

Chester Barnard (1938),

(1915 [1962]),

firm

Herbert Sue (1957a), Adam March (March and Sue, 1958) and Richard Scott deserves greater prominence.

(1992) also manufactured the case that organization

Thorstein

Veblen

reason this message took quite a long time to register is the fact it is very much matters than it is to present how and why. one particular The

to say that firm

the

scientific research

choice

to economics

is an

of

of

prevalence

approach

1

easier

Because developed

are

herein, the teachings of corporation

theory pertaining to economics

the

lens

of

con?

several and more consequential

when evaluated

through

system. This paper examines

economic

from a science

of contract

business

on

the

of

the

firm.

with

special emphasis

theory

perspective,

obstacle.

both

1 A Behavioral

Theoryof theFirm(Cyert and March, 1963) was one particular obvious early on candidate intended for an economic theory of companies. It deals, however , with more fine-grained trends? such as guessing department store rates to the cent? than were of interest to the majority of economists. For the discussion, find Williamson (1999b). The latest and developing interest in behavioral economics? which deals more with the theory of consumer behavior compared to the theory with the firm? could be interpreted being a delayed response to the lessons in the " Carnegie school" linked to Cyert, 03 and Claire.

? OliverE.

Economics

Williamson isEdgarF. Kaiser Teacher of Business Administration, Mentor of and Professor of Law, almost all at the University or college of Washington dc, Berkeley. His e-mail

addresses is ([email protected] berkeley. edu).

This content downloaded from 131. 174. 75. 30 in Tue, 21 years old Apr 2015 06: 39: 58 UTC All make use of subject to JSTOR Terms and Conditions

172

Journal

The

Sciences

of Economic Points of views

of

Decision

and

Deal

Economics

the twentieth

predomithroughout

century has become developed

As

it

in

as

a

his

An Essay

scientific research

of

choice.

Lionel

Robbins

book,

nantly

famously place

is the

within the Nature and Significance of Economic Technology (1932, g. 16), " Economics which

a...

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