In brief:
The market and the firm are two forms of economic cooperation. How do they differ? When is the market the more efficient form of organization? When is the firm, as a form of cooperation, superior? The market functions where potentially concurrent exchange transactions in a homogenous resource with known characteristics are to be executed. However, it is not so much a mechanism for sequentially ordered individual steps of different types that follow on from each other in a logical order or specific time sequence. Here, the firm is more effective, performing multistage processes and longer-term allocations. In other words, the firm initiates and carries out investments.
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© 2009 Springer-Verlag Berlin Heidelberg
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(2009). Market or Firm?. In: Management Between Strategy and Finance. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-85275-9_1
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DOI: https://doi.org/10.1007/978-3-540-85275-9_1
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-85274-2
Online ISBN: 978-3-540-85275-9
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