The Golden Decade

6 January 2007 at 6:34 pm 1 comment

| Peter Klein |

Our friends at orgtheory.net are discussing the year 1977, in which several classic works in organization theory were published. I can’t be that precise, but I can vouch for the 1970s — a “golden decade” for organizational economics research. Coase’s “Nature of the Firm” appeared in 1937, of course, but it remained — in Coase’s words — “much cited, little used.” It was only in the 1970s that the modern theory of the firm, or the new economics of organization, emerged. Consider this list:

Williamson, Oliver E. 1970. Corporate Control and Business Behavior. Englewood Cliffs: Prentice Hall.

Williamson, Oliver E. 1971. “The Vertical Integration of Production: Market Failure Considerations.” American Economic Review 61: 112-23.

Alchian, Armen A. and Harold Demsetz. 1972. “Production, Information Costs, and Economic Organization.” American Economic Review 62: 772-95.

Hurwicz, Leonid. 1972. “On Informationally Decentralized Systems.” In Charles B. McGuire and Roy Radner, eds., Decision and Organization. Amsterdam: North-Holland, pp. 297-33.

Marschak, Jacob, and Roy Radner. 1972. The Economic Theory of Teams. New Haven: Cowles Foundation and Yale University Press.

Richardson, George B. 1972. “The Organisation of Industry.” Economic Journal 82: 883-96.

Nelson, Richard R. and Sidney G. Winter. 1973. “Toward an Evolutionary View of Economic Capabilities.” American Economic Review 63: 440-49.

Ross, Stephen A. 1973. “The Economic Theory of Agency: The Principal’s Problem.” American Economic Review 63: 134-39.

Arrow, Kenneth J. 1974. The Limits of Organization. New York: W.W. Norton & Co.

Williamson, Oliver E. 1975. Markets and Hierarchies. New York: Free Press.

Jensen, Michael C. and William Meckling. 1976. “The Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure.” Journal of Financial Economics 3: 305-60.

Chandler, Alfred D., Jr. 1977. The Visible Hand: The Managerial Revolution in American Business. Cambridge, Mass.: Harvard University Press.

Klein, Benjamin, Robert G. Crawford, and Armen A. Alchian. 1978. “Vertical Integration, Appropriable Rents, and the Competitive Contracting Process.” Journal of Law and Economics 21: 297-326.

Holmström, Bengt. 1979. “Moral Hazard and Observability.” Bell Journal of Economics 10: 74-91.

Williamson, Oliver E. 1979. “Transaction Cost Economics: The Governance of Contractual Relations.” Journal of Law and Economics 22: 233-261.

What can one say, except, “Wow!” Now, what have I left off?

Entry filed under: - Klein -, Management Theory, Strategic Management, Theory of the Firm.

Introducing Guest Blogger Clifford Grammich The Religious Marketplace

1 Comment Add your own

  • 1. Joseph Mahoney  |  7 January 2007 at 2:13 pm

    Akerlof, George. A. 1970. The market for ‘lemons’: Qualitative uncertainty and the market mechanism. Quarterly Journal of Economics, 84: 488-500.

    Armour, H. O. and David J. Teece 1978. Organizational structure and economic performance: A test of the multidivisional hypothesis. Bell Journal of Economics, 9: 106-122.

    Demsetz, Harold. 1973. Industry structure, market rivarly and public policy. Journal of Law and Economics, 16: 1-9.

    Furubotn, E. and S. Pejovich 1972. Property rights and economic theory. Journal of Economic Literature, 10: 1137-1162.

    Hirschman, A. 1970. EXIT, VOICE and LOYALTY. Cambridge, MA: Harvard University Press.

    Ouchi, William G. 1979. A conceptual framework for the design of organizational control mechanisms. Management Science, 25: 833-848.

    Rubin, Paul H. 1973. The expansion
    of firms. Journal of Political Economy, 81: 936-949.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Authors

Nicolai J. Foss | home | posts
Peter G. Klein | home | posts
Richard Langlois | home | posts
Lasse B. Lien | home | posts

Guests

Former Guests | posts

Networking

Recent Posts

Categories

Feeds

Our Recent Books

Nicolai J. Foss and Peter G. Klein, Organizing Entrepreneurial Judgment: A New Approach to the Firm (Cambridge University Press, 2012).
Peter G. Klein and Micheal E. Sykuta, eds., The Elgar Companion to Transaction Cost Economics (Edward Elgar, 2010).
Peter G. Klein, The Capitalist and the Entrepreneur: Essays on Organizations and Markets (Mises Institute, 2010).
Richard N. Langlois, The Dynamics of Industrial Capitalism: Schumpeter, Chandler, and the New Economy (Routledge, 2007).
Nicolai J. Foss, Strategy, Economic Organization, and the Knowledge Economy: The Coordination of Firms and Resources (Oxford University Press, 2005).
Raghu Garud, Arun Kumaraswamy, and Richard N. Langlois, eds., Managing in the Modular Age: Architectures, Networks and Organizations (Blackwell, 2003).
Nicolai J. Foss and Peter G. Klein, eds., Entrepreneurship and the Firm: Austrian Perspectives on Economic Organization (Elgar, 2002).
Nicolai J. Foss and Volker Mahnke, eds., Competence, Governance, and Entrepreneurship: Advances in Economic Strategy Research (Oxford, 2000).
Nicolai J. Foss and Paul L. Robertson, eds., Resources, Technology, and Strategy: Explorations in the Resource-based Perspective (Routledge, 2000).