Open AccessValue Creation, Transactions and the Firm
Publication year - 2018
Publication title -
american journal of business
Language(s) - English
Resource type - Journals
ISSN - 2165-7998
DOI - 10.33423/ajm.v18i5.253
Subject(s) - database transaction , analogy , intermediation , value (mathematics) , simple (philosophy) , theory of the firm , industrial organization , microeconomics , transaction cost , value creation , object (grammar) , economics , business , computer science , database , artificial intelligence , macroeconomics , epistemology , philosophy , machine learning
Going from supply and demand analysis to value creation can be puzzling. The paper defines a simple transaction model representing value creation with and without the intermediation of a firm, measuring transaction price indetermination, and defining conditions for a transaction to occur. Using Debreu’s classification of “The theory of value”, an analogy pictures the role of the firm. In the theory of knowledge, it is one of the four dimensions of a definition of an object. These dimensions are discussed, particularly the functions of the firm and its components, what it is made of.