ArticleDetail Upload Article
Title: Inside Organizations: Pricing, Politics, and Path Dependence
Article Text:
Working Paper:
When economists have considered organizations, much attention has focused on the boundary of the firm, rather than its internal structures and processes. In contrast, this essay sketches three approaches to the economic theory of internal organization - one substantially developed, another rapidly emerging, and a third on the horizon. The first approach (pricing) applies Pigous prescription: if markets get prices wrong then the economists job is to fix the prices. The second approach (politics) considers environments where important actions inside organizations simply cannot be priced, so power and control become central. Finally, the third approach (path-dependence) complements the first two by shifting attention from the between variance to the within. That is, rather than ask how organizations confronting different circumstances should choose different structures and processes, the focus here is on how path-dependence can cause persistent performance differences among seemingly similar enterprises.
Comments (0):
- Become the first member to comment on this media.
Media Information
Inside Organizations: Pricing, Politics, and Path Dependence
Date Added: October 03, 2011 2:26 PM
Uploaded By: MIT A.
Views: 66
Get Involved
Related Media
Capital Flow Volatility and Contagion: A Focus on Asia
Date: April 02, 2013 10:01 AM
By: MIT A.
Gender Sorting and the Glass Ceiling in High Tech
Date: March 25, 2013 9:44 AM
By: MIT A.
User Generated Brands and their Contribution to the Diffusion of User Innovations
Date: December 17, 2012 10:18 AM
By: MIT A.
The Causal Status of Social Capital in Labor Markets
Date: November 14, 2012 9:58 AM
By: MIT A.
Bubble Thy Neighbor: Portfolio Effects and Externalities from Capital Controls
Date: November 14, 2012 9:57 AM
By: MIT A.