A theory of the firm is advanced as a unified property rights for surplus created by cooperative activity. This differs from traditional transaction cost literature which views the firm as a governance structure. Individual purposive entities act in their own interests, within or without a firm. Only contractible inputs are coordinated for joint surplus maximization. Each party determines her non-contractible inputs for her own benefits, which explain many observed firm phenomena. An equilibrium models are developed for the firm and used to explain the questions of firm existence, boundary, and ownership.
| Published in | International Journal of Economic Behavior and Organization (Volume 6, Issue 1) |
| DOI | 10.11648/j.ijebo.20180601.11 |
| Page(s) | 1-10 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
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Copyright © The Author(s), 2018. Published by Science Publishing Group |
Firm, Surplus, Contractibility, Equilibrium
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APA Style
Zhongwei Wu. (2018). Surplus, Contractibility and Theory of the Firm. International Journal of Economic Behavior and Organization, 6(1), 1-10. https://doi.org/10.11648/j.ijebo.20180601.11
ACS Style
Zhongwei Wu. Surplus, Contractibility and Theory of the Firm. Int. J. Econ. Behav. Organ. 2018, 6(1), 1-10. doi: 10.11648/j.ijebo.20180601.11
AMA Style
Zhongwei Wu. Surplus, Contractibility and Theory of the Firm. Int J Econ Behav Organ. 2018;6(1):1-10. doi: 10.11648/j.ijebo.20180601.11
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Download@article{10.11648/j.ijebo.20180601.11,
author = {Zhongwei Wu},
title = {Surplus, Contractibility and Theory of the Firm},
journal = {International Journal of Economic Behavior and Organization},
volume = {6},
number = {1},
pages = {1-10},
doi = {10.11648/j.ijebo.20180601.11},
url = {https://doi.org/10.11648/j.ijebo.20180601.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20180601.11},
abstract = {A theory of the firm is advanced as a unified property rights for surplus created by cooperative activity. This differs from traditional transaction cost literature which views the firm as a governance structure. Individual purposive entities act in their own interests, within or without a firm. Only contractible inputs are coordinated for joint surplus maximization. Each party determines her non-contractible inputs for her own benefits, which explain many observed firm phenomena. An equilibrium models are developed for the firm and used to explain the questions of firm existence, boundary, and ownership.},
year = {2018}
}
TY - JOUR T1 - Surplus, Contractibility and Theory of the Firm AU - Zhongwei Wu Y1 - 2018/01/26 PY - 2018 N1 - https://doi.org/10.11648/j.ijebo.20180601.11 DO - 10.11648/j.ijebo.20180601.11 T2 - International Journal of Economic Behavior and Organization JF - International Journal of Economic Behavior and Organization JO - International Journal of Economic Behavior and Organization SP - 1 EP - 10 PB - Science Publishing Group SN - 2328-7616 UR - https://doi.org/10.11648/j.ijebo.20180601.11 AB - A theory of the firm is advanced as a unified property rights for surplus created by cooperative activity. This differs from traditional transaction cost literature which views the firm as a governance structure. Individual purposive entities act in their own interests, within or without a firm. Only contractible inputs are coordinated for joint surplus maximization. Each party determines her non-contractible inputs for her own benefits, which explain many observed firm phenomena. An equilibrium models are developed for the firm and used to explain the questions of firm existence, boundary, and ownership. VL - 6 IS - 1 ER -
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