New theories of the firm
Abstract
The study of companies we have developed so far has been based on a twofold assumption: that a company's only goal is to maximize profit, and that contracts are always complete and information is fully symmetrical. In this chapter we will continue to maintain the first assumption while setting aside the second. We will then analyze what happens to a firm, and to the economy in general, when contractual incompleteness and/or informational asymmetries are present. In so doing we can know the most recent developments in the theory of the firm and markets over the last thirty years.
Keywords
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