ENGLISH

Division of Labor, Variability, Coordination, and the Theory of Firms and Markets

By A. Camacho (auth.)

Book information

Publisher
Springer Netherlands
Year
1996
ISBN
978-90-481-4648-2, 978-94-015-8658-0
DOI
10.1007/978-94-015-8658-0
Language
english
Format
PDF
Filesize
3 MB (2861302 bytes)
Series
Theory and Decision Library 22
Edition
1
Pages
154\163
Orientation
yes
Scanned
yes
Time added
2013-08-01 04:00:00
Econometrics; Economic Theory; Industrial Organiza

Description

A new approach to explaining the existence of firms and markets, focusing on variability and coordination. It stands in contrast to the emphasis on transaction costs, and on monitoring and incentive structures, which are prominent in most of the modern literature in this field. This approach, called the variability approach, allows us to: show why both the need for communication and the coordination costs increase when the division of labor increases; explain why, while the firm relies on direction, the market does not; rigorously formulate the optimum divisionalization problem; better understand the relationship between technology and organization; show why the `size' of the firm is limited; and to refine the analysis of whether the existence of a sharable input, or the presence of an external effect leads to the emergence of a firm. The book provides a wealth of insights for students and professionals in economics, business, law and organization.

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