Theory of the Firm in Incomplete Markets: A Complete Generalization

The article examines the interpretation of vertical restraints in Chicago, post-Chicago and New Institutional Economics approaches, as well as the reflection of these approaches in the application of antitrust laws. The main difference between neoclassical and new institutional analysis of vertical restraints is that the former compares the results of their use with market organization outcomes, and assesses mainly horizontal effects, while the latter focuses on the analysis of vertical effects, comparing the results of vertical restraints application with hierarchical organization. Accordingly, the evaluation of vertical restraints impact on competition differs radically. The approach of the New Institutional Theory of the firm seems fruitful for Russian markets.

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The Economic Theory of the Firm: A Generalization

Voprosy Ekonomiki ◽

10.32609/0042-8736-2012-9-41-66 ◽

2012 ◽

pp. 41-66 ◽

Cited By ~ 1

Author(s):

M. Storchevoy

Keyword(s):

Economic Theory ◽

General Theory ◽

Contract Theory ◽

Theory Of The Firm ◽

Material Structure ◽

Structural Factors ◽

Boundaries Of The Firm ◽

Opportunistic Behaviour ◽

New Variant

The paper deals with development of a general theory of the firm. It discusses the demand for such a theory, reviews existing approaches to its generalization, and offers a new variant of general theory of the firm based on the contract theory. The theory is based on minimization of opportunistic behaviour determined by the material structure of production (a classification of ten structural factors is offered). This framework is applied to the analysis of three boundaries problems (boundaries of the job, boundaries of the unit, boundaries of the firm) and five integration dilemmas (vertical, horizontal, functional, related, and conglomerate).

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Theory of the firm, Supply Chain management, and relationship marketing

Voprosy Ekonomiki ◽

10.32609/0042-8736-2014-1-40-60 ◽

2014 ◽

pp. 40-60

Author(s):

M. Storchevoy

Keyword(s):

Economic Theory ◽

Supply Chain ◽

Supply Chain Management ◽

Relationship Marketing ◽

Theory Of The Firm ◽

Chain Management

The paper studies through the lens of the economic theory of the firm the development of two managerial disciplines: supply chain management and relationship marketing. The author demonstrates which ideas have been borrowed by these disciplines from the economic theory of the firm, and in what extent their implications may be useful for the latter.

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