Agency Costs in Corporations
5 January 2007
| Peter Klein |
Law professors are calling this “the best corporate law cartoon ever.” (Click to enlarge.)
Entry Filed under: - Klein -, Strategic Management, Theory of the Firm. .
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pj | 5 January 2007 at 3:26 pm
As this cartoon illustrates, transaction costs inside the firm may be just as large as transaction costs with outsiders. This is why those who define transaction costs to include only costs of dealing with outsiders are frittering away the core of Ronald Coase’s insight.