Title: Emprical contributions to the theory of the firm

Authors: Darlene C. Chisholm

Addresses: Suffolk University, USA

Abstract: In 1937, Ronald Coase proposed that the cost of transacting between producers and suppliers will determine the economic organisation of a firm. From this original insight, and further refinements, an important stream of literature developed providing the foundations for transaction-cost economics, principal-agent theory, and risk analysis as it relates to contract design. From these theoretical foundations, a body of empirical work has tested the predictions of Coase|s original assertions. This article documents key empirical contributions to identifying the institutional and statistical determinants of optimal contract design and the choice of economic organisation.

Keywords: transaction-cost economics; principal-agent theory; risk analysis; contract design; economic organisation; theory of the firm.

DOI: 10.1504/GBER.2002.006183

Global Business and Economics Review, 2002 Vol.4 No.1, pp.119 - 130

Published online: 07 Feb 2005 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article