Contracts, Entrepreneurs, Market Creation and Judgement: The Contemporary Mainstream Theory of the Firm in Perspective

Walker, Paul

doi:10.2139/ssrn.2281642

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Contracts, Entrepreneurs, Market Creation and Judgement: The Contemporary Mainstream Theory of the Firm in Perspective

31 Pages Posted: 22 Jun 2013 Last revised: 19 Dec 2014

See all articles by Paul Walker

Paul Walker

Independent

Date Written: October 28, 2013

Abstract

This survey gives an overview of the theory of the firm as it is formulated within the contemporary 'mainstream' of economics. Two groupings of theories are briefly discussed: principal-agent and incomplete contract models. Next, three of the most recent contributions regarding firms are considered. The reference point approach is looked at first followed by a discussion of Spulber's book "The Theory of the Firm". Last we consider the entrepreneurial judgement perspective.

Keywords: theory of the firm, incomplete contracts, principal-agent, Spulber, entrepreneurial judgement

JEL Classification: B21, D23, L20

Suggested Citation: Suggested Citation

Walker, Paul, Contracts, Entrepreneurs, Market Creation and Judgement: The Contemporary Mainstream Theory of the Firm in Perspective (October 28, 2013). Available at SSRN: https://ssrn.com/abstract=2281642 or http://dx.doi.org/10.2139/ssrn.2281642