Premium
CONTRACTS, ENTREPRENEURS, MARKET CREATION AND JUDGEMENT: THE CONTEMPORARY MAINSTREAM THEORY OF THE FIRM IN PERSPECTIVE
Author(s) -
Walker Paul
Publication year - 2015
Publication title -
journal of economic surveys
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.657
H-Index - 92
eISSN - 1467-6419
pISSN - 0950-0804
DOI - 10.1111/joes.12058
Subject(s) - judgement , mainstream , perspective (graphical) , economics , positive economics , contract theory , theory of the firm , point (geometry) , principal (computer security) , neoclassical economics , epistemology , political science , philosophy , geometry , mathematics , artificial intelligence , computer science , law , operating system
This survey gives an overview of the theory of the firm as it is formulated within the contemporary ‘mainstream’ of economics. Two groupings of theories are briefly discussed: principal–agent and incomplete contract models. Next, three of the most recent contributions regarding firms are considered. The reference point approach is looked at first followed by a discussion of Spulber's book The Theory of the Firm . Last, we consider the entrepreneurial judgement perspective.