21 April 2009 at 7:18 am Lasse 10 comments
| Lasse Lien |
If you need a rich example of the hazards of contracting, this one is particularly pregnant. Make sure you read it through to the end. Best suited for mature audiences.
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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).
Organizations and Markets 
1.
Bart | 21 April 2009 at 9:10 am
Gives some extra meaning to the word “guile”
2.
REW | 21 April 2009 at 9:52 am
and “adverse selection”
3.
dgerard | 21 April 2009 at 6:46 pm
Is that considered horizontal or vertical integration?
4.
Peter Klein | 21 April 2009 at 9:29 pm
My friend Deb Walker wrote a dissertation back in the 1980s on the mattress industry. How do you think she liked being known as the “mattress gal”?
5.
Marcin | 22 April 2009 at 2:27 am
And this shows why written agreements, and – yes! – even lawyers are really worth the money.
6.
Lasse | 22 April 2009 at 4:07 am
Can asset specificity be read into the example? If so, I think I can give an entire organizational economics course around the story.
7.
Bart | 22 April 2009 at 8:38 am
Lasse,
the article does mention that the neighbour looked like the husband, which would be the reason for enaging a contractual relation with him specifically. In this case I would say that the much-encountered factor of geographic distance plays a minor (though not inconvenient) role.
You gunna give this course or what?
8.
Lasse | 23 April 2009 at 2:23 am
Good point Bart.
Actually I’ve decided to de velop an entire degree around it. All I need is a good name for the degree. Got any suggestions? Master of ………..
9.
Bart | 23 April 2009 at 4:53 am
… Neighbourly Conduct
10.
REW | 23 April 2009 at 10:25 am
… Adverse Seduction?
… Human Capital Contracting?