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The Times and the Theory

  • Colin Read
Part of the Great Minds in Finance book series (GMF)

Abstract

In 1937, Ronald Coase, then a young 27-year-old lecturer at the London School of Economics, had posed a provocative puzzle. When should a firm outsource an intermediate factor of production, and when should it produce the good or service in-house? This relatively simple question spawned the first academically rigorous explanation for the modern corporation and provided a theoretical explanation for the valuation of a corporation that is in excess of its book value of assets.

Keywords

Corporate Governance Transaction Cost Vertical Integration Transaction Cost Economic Neoclassical Model 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Notes

  1. 1.
    Oliver Williamson, “The Vertical Integration of Production: Market Failure Considerations”, The American Economic Review, Vol. 61, No. 2, Papers and Proceedings of the Eighty-Third Annual Meeting of the American Economic Association, May, 1971, pp. 112–23.Google Scholar
  2. 2.
    Oliver Williamson, Markets and Hierarchies: Analysis and Antitrust Implications, New York: Free Press, 1975.Google Scholar
  3. 3.
    Oliver Williamson, “Transaction-Cost Economics: The Governance of Contractual Relations,” Journal of Law and Economics, 22(2), 1979, pp. 233–61.CrossRefGoogle Scholar

Copyright information

© Colin Read 2015

Authors and Affiliations

  • Colin Read
    • 1
  1. 1.SUNY CollegePlattsburghUSA

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