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Economic Efficiency of the Organizational Decisions of the Firm

  • T. V. S. Ramamohan Rao

Table of contents

  1. Front Matter
    Pages I-XI
  2. T. V. S. Ramamohan Rao
    Pages 1-20
  3. T. V. S. Ramamohan Rao
    Pages 21-52
  4. T. V. S. Ramamohan Rao
    Pages 53-76
  5. T. V. S. Ramamohan Rao
    Pages 77-94
  6. T. V. S. Ramamohan Rao
    Pages 95-120
  7. T. V. S. Ramamohan Rao
    Pages 121-141
  8. T. V. S. Ramamohan Rao
    Pages 142-166
  9. T. V. S. Ramamohan Rao
    Pages 167-179
  10. T. V. S. Ramamohan Rao
    Pages 180-201
  11. T. V. S. Ramamohan Rao
    Pages 202-212
  12. Back Matter
    Pages 213-227

About this book

Introduction

Over the past several years there has been an awareness that mar­ kets, contractual arrangements, and hierarchical organizations can be uti­ lized as alternative modes of coordinating resource utilization in the con­ text of the firm. In most practical situations mixed forms of organization are more frequent. That is, non-market coordination mechanisms are being utilized even in predominantly market oriented economies. The reasons for the use of one of these organizational modes over the others are still being examined extensively. Very often, asset specificity and bilateral monopoly, risk sharing under uncertainty, transaction cost considerations, and/or technological externalities (economies of scope) have been considered as the major reasons for preferring one of these modes over the others. However, the ultimate effect on the performance of the firm, of any of these aspects which result in the adoption of any specific organizational pattern, has to be through the cost curve and/or the demand curve. The neoclassical welfare concepts, which have been developed to examine the efficiency in the functioning of markets, are well known. The sources of inefficiency in the performance of the firm under different mar­ ket structures are also well documented. However, there is as yet no well established set of concepts to examine the economic efficiency of the other organizational forms. It is not clear that the neoclassical welfare concepts are not relevant even under the new organizational setting. Studies of this nature are a relatively new area of economic research.

Keywords

Organisation efficiency integration organizations welfare

Authors and affiliations

  • T. V. S. Ramamohan Rao
    • 1
  1. 1.Indian Institute of TechnologyKanpurIndia

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-642-75005-2
  • Copyright Information Springer-Verlag Berlin Heidelberg 1989
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-540-51570-8
  • Online ISBN 978-3-642-75005-2
  • Buy this book on publisher's site
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