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Industrial and Corporate Change, Volume 9, Number 4, pp. 683-707
© 2000 Oxford University Press

Searching for the firm: the role of decision in the economics of organizations

N Kay

Department of Economics, University of Strathclyde, Curran Building, 100 Cathedral Street, Glasgow G4 0LN, UK
E-mail: n.m.kay@strath.ac.uk

Abstract

This paper considers reasons for the existence of firms and concludes that traditional perspectives provided by economics may be unsatisfactory and incomplete. It suggests that there has been an overemphasis on the role of contractual relations in economic organization, and argues instead that it is the character of decisions that defines and influences the nature of firms. The paper explores some directions for integrating decisions into studies of the firm.


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