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Alchian Demsetz (1972) - Production Information Costs And Economic Organization (view source)
Revision as of 20:50, 4 April 2010
, 20:50, 4 April 2010New page: ==Reference(s)== Alchian, Armen A. and Harold Demsetz (1972), "Production, Information Costs, and Economic Organization", The American Economic Review, Vol. 62, No. 5. (Dec.), pp. 777-795 ...
==Reference(s)==
Alchian, Armen A. and Harold Demsetz (1972), "Production, Information Costs, and Economic Organization", The American Economic Review, Vol. 62, No. 5. (Dec.), pp. 777-795 [http://www.edegan.com/pdfs/Alchian%20Demsetz%20(1972)%20-%20Production%20Information%20Costs%20and%20Economic%20Organization.pdf pdf]
==Abstract==
The mark of a capitalistic society is that resources are owned and allocated by such nongovernmental organizations as firms, households, and markets. Resource owners increase productivity through cooperative specialization and this leads to the demand for economic organizations which facili- tate cooperation. When a lumber mill employs a cabinetmaker, cooperation be- tween specialists is achieved within a firm, and when a cabinetmaker purchases wood from a lumberman, the cooperation takes place across markets (or between firms). Two important problems face a theory of economic organization-to explain the conditions that determine whether the gains from specialization and cooperative production can better be obtained within an organization like the firm, or across markets, and to explain the structure of the organization.
Alchian, Armen A. and Harold Demsetz (1972), "Production, Information Costs, and Economic Organization", The American Economic Review, Vol. 62, No. 5. (Dec.), pp. 777-795 [http://www.edegan.com/pdfs/Alchian%20Demsetz%20(1972)%20-%20Production%20Information%20Costs%20and%20Economic%20Organization.pdf pdf]
==Abstract==
The mark of a capitalistic society is that resources are owned and allocated by such nongovernmental organizations as firms, households, and markets. Resource owners increase productivity through cooperative specialization and this leads to the demand for economic organizations which facili- tate cooperation. When a lumber mill employs a cabinetmaker, cooperation be- tween specialists is achieved within a firm, and when a cabinetmaker purchases wood from a lumberman, the cooperation takes place across markets (or between firms). Two important problems face a theory of economic organization-to explain the conditions that determine whether the gains from specialization and cooperative production can better be obtained within an organization like the firm, or across markets, and to explain the structure of the organization.
