Abstract
Organizations exist because they cost-effectively coordinate and provide incentives relative to alternative modes of transacting. The article exposes some of the main economic explanations for why organization emerges, what it does and how its scale and scope are determined, highlighting the role of a hierarchical command structure in aligning the members’ objectives with those of the organization and successfully overcoming problems of asymmetric information and collusion.
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Bac, M. (2014). Organization. In: Backhaus, J. (eds) Encyclopedia of Law and Economics. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-7883-6_358-1
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DOI: https://doi.org/10.1007/978-1-4614-7883-6_358-1
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Organization- Published:
- 24 October 2021
DOI: https://doi.org/10.1007/978-1-4614-7883-6_358-2
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Organization- Published:
- 20 October 2014
DOI: https://doi.org/10.1007/978-1-4614-7883-6_358-1