The Economics of the Business Firm : Seven Critical Commentaries

The essays in this volume discuss the theory of the business firm and its applications in economics. A leading analyst of industrial organization, Professor Demsetz first critically examines current debates on the existence, definition, and organization of the firm and discusses conceptual and theoretical issues related to the emerging theory of the firm. He then analyzes contemporary treatments of the relation between business ownership, wealth, and economic development. Subsequent essays offer new perspectives on competition, profit maximization and rational behavior, and shed new light on managers' compensation, antitrust policy, and the accuracy of firms' accounting data. The latter themes will interest business audiences as well as professionals and students in economics. These previously unpublished essays derive from lectures originally presented at Uppsala and Lund Universities in Sweden, the Mont Pelerin Society meeting in Prague, and the Center for the Study of Economics and the State at the University of Chicago. The Seven Essays In This Volume Break New Ground In The Theory Of The Business Firm And Its Applications In Economics. A Leading Analyst Of Industrial Organization, Professor Demsetz First Critically Examines Current Debates On The Existence, Definition, And Organization Of The Firm Discussing Conceptual And Theoretical Issues Related To The Emerging Theory Of The Firm. He Then Investigates And Comments On Contemporary Treatments Of The Relation Between Business Ownership, Wealth, And Economic Development. Subsequent Essays Offer New Perspectives On Competition, Profit Maximization, And Rational Behavior, And Shedding New Light On Managers' Compensation, Antitrust Policy, And The Accuracy Of Firms' Accounting Data. The Latter Themes In Particular Make The Collection Of Interest To Business Audiences As Well As To Professionals And Students In Economics. These Previously Unpublished Essays Derive From Lectures Originally Presented At Uppsala And Lund Universities In Sweden, The Mont Pelerin Society Meeting In Prague, And The Center For The Study Of Economy And The State At The University Of Chicago. First Commentary: The Firm Of Theory: Its Definition And Existence -- Second Commentary: Agency And Nonagency Explanations Of The Firm's Organization -- Third Commentary: Enterprise Control, Wealth, And Economic Development -- Fourth Commentary: Profit Maximization And Rational Behavior -- Fifth Commentary: The Use And Abuse Of Accounting Profit Data -- Sixth Commentary: Management Compensation And Tournament Theory -- Seventh Commentary: The Intensity And Dimensionality Of Competition. Harold Demsetz. Includes Bibliographical References (p. 170-174) And Index. The essays in this volume break new ground in the theory of the business firm and its applications in economics. A leading analyst of industrial organization, Professor Demsetz critically examines current debates on the existence, definition, and organization of the firm and discusses issues related to the emerging theory of the firm. He then analyzes the relation among business ownership, wealth, and economic development. Subsequent essays offer new perspectives on competition, profit maximization and rational behavior, and shed new light on managers' compensation, antitrust policy, and the accuracy of firms' accounting data. The essays in this volume focus on the theory of the business firm and its applications in economics. The text examines such issues as the definition and organization of the firm, and contemporary treatments of the relation between business ownership, weal