Book Series
Theories of the Firm
Fifth Edition
Demetri Kantarelis


I am deeply obliged to Michael Szenberg (Pace University), Lall Ramrattan (University of California / Extension – Berkeley) and to Oliver Williamson (Economics Nobel Laureate 2009, University of California – Berkeley), for reviewing previous editions, reading drafts of new sections, insightful brainstorming, their suggestions and guidance, and most importantly, for their encouragement to stay focused on this work in progress.

I am grateful to my colleagues, Kevin Hickey, Stuart Lynn, and Dylan McGee of the Department of Economics and Global Studies at Assumption College, for reading drafts of chapters and offering constructive comments. I would also like to acknowledge the help I received from Joe Alfano (Mathematics Department, Assumption College) for offering his guidance on various mathematical perplexities.

Thanks are also due to the many readers of previous editions who offered support and invaluable comments for improvement; in alphabetical order, they are: Jörg Borrmann, Lisa Bradley, Peter Demediuk, Athanasios Hadjimanolis, Marko Kolaković, Khalid Saeed, Ioannis Salavrakos, Andrew Spanyi, and Darko Tipuric. I am also thankful to my students at Assumption College and Worcester Polytechnic Institute who painstakingly read previous editions and suffered through drafts of the 4th edition.

Finally, I am indebted to Jeanette Brooks, Mohammed Dorgham, Albert Ang, Sue O’Mara, Jim Corlett and their associates at Inderscience for providing valuable editorial assistance and for their superb professional expertise in the production process of the 5th edition.

Demetri Kantarelis

Professor of Economics,
Department of Economics & Global Studies,
Assumption College, 500 Salisbury Street,
Worcester, MA 01609-1296, USA