Incomplete contracts and the theory of the firm

Journal of Law, Economics, and Organization

Volumn 4, Issue 1, 1988, Pages 119-139

  Hart, Oliver D ^a  

^a MASSACHUSETTS INSTITUTE OF TECHNOLOGY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 77958397400     PISSN: 87566222     EISSN: 14657341     Source Type: Journal    
DOI: 10.1093/oxfordjournals.jleo.a036940     Document Type: Article

References (29)

1. Aghkm, P., and P. Bolton. 1987. “An ‘Incomplete Contracts’ Approach to Bankruptcy and the Optimal Financial Structure of the Firm.” Unpublished mimeo.
2. Alchian, A., and H. Demsetz. 1972. “Production, Information Costs and Economic Organization,” 62 American Economic Review 777-95.
3. Arrow, K. J. 1975. “Vertical Integration and Communication,” 6 Bell Journal of Economics 173-83.
4. Coase, R. 1937. “The Nature of the Firm, 4 Economica n.s. 386-405; repr. (1952) in G. Stigier and K. Boulding, eds. Readings in Price Theory. Homewood, 111: Richard D. Irwin.
5. Coase, R. 1960. “The Problem of Social Cost,” 3 Journal of Law and Economics 144.
6. Coase, R. 1988. “The Nature of the Firm: Origin, Meaning, Influence,” 4 Journal of Law, Economics, and Organization.
7. Crocker, K. J. 1983. “Vertical Integration and the Strategic Use of Private Information,” 14 Bell Journal of Economics 236-48.
8. See, e.g., Aghton and Bolton, Cross man and Hart (1988), and Harris and Haviv. Note that giving managers or investors control is not the only possibility. Others include worker control (as in worker-managed firms) and consumer control (as in consumer cooperatives). For an interesting discussion of some of these possibilities, see Fama and Jensen, and Hanstnann.
9. Demsetz, H. 1967. “Toward a Theory of Property Rights,” 57 American Economic Review 347-58.
10. Fama, E. F., and M. C. Jensen. 1983. “Separation of Ownership and Control,” 26 Journal of Law and Economics 301-25.
11. Goldberg, V. 1976. “Regulation and Administered Contracts,” 7 Bell Journal of Economics 426-48.
12. Crossman, S., and O. Hart. 1986. “The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration,” 94 Journal of Political Economy 691-719.
13. Crossman, S., and O. Hart. 1988. “One Share/One Vote and the Market for Corporate Control.” Forthcoming, Journal of Financial Economics.
14. Hansmann, H. 1986. “A General Theory of Corporate Ownership.” Unpublished mimeo, Yale University.
15. Harris, M., and A. Raviv. 1988. “Corporate Governance: Voting Rights and Majority Rules.” Forthcoming, Journal of Financial Economics.
16. Hart, O., and B. Holmstrom. 1987. “The Theory of Contracts.” In T. Bewley, ed., Advances in Economic Theory, Fifth World Congress (Cambridge: Cambridge University Press).
17. Holmstrom, B. 1982. “Moral Hazard in Teams,” 13 Bell Journal of Economics 324-40.
18. Holmstrom, B., and J. Tirole. 1989. “The Theory of the Firm.” In R. Schmalensee and R. Willig, eds., Handbook of Industrial Organization, forthcoming.
19. Joskow, P. 1985. “Vertical Integration and Long-Term Contracts,” 1 Journal of Law, Economics, and Organization, 33-80.
20. Klein, B., R. Crawford, and A. Alchian. 1978. “Vertical Integration, Appropriable Rents and the Competitive Contracting Process,” 21 Journal of Law and Economics 297-326.
21. Kreps, D. 1984. “Corporate Culture and Economic Theory.” Unpublished mimeo, Stanford University.
22. Masten, S. 1988. “A Legal Basis for the Firm,” 4 Journal of Law, Economics and Organization.
23. Milgrom, P. 1988. “Employment Contracts, Influence Activities, and Efficient Organization Design,” 96 Journal of Political Economy, 42-60.
24. Perry, M. 1989. “Vertical Integration: Determinants and Effects.” In R. Schmalensee and R. Willig, eds., Handbook of Industrial Organization, forthcoming.
25. Simon, H. 1951. “A Formal Theory of the Employment Relation.” 19 Econometrica 293-305.
26. Weitzman, M. 1974. “Prices versus Quantities,” 41 Review of Economic Studies 477-91.
27. Williamson, O. 1975. Markets and Hierarchies: Analysis and Antitrust Implications. New York: Free Press.
28. Williamson, O. 1979. “Transaction-Cost Economics: The Governance of Contractual Relations,” 22 Journal of Law and Economics 3-61.
29. Williamson, O. 1985. The Economic Institutions of Capitalism. New York: Free Press.