IDEAS home Printed from https://ideas.repec.org/a/bas/econst/y2018i5p79-85.html
   My bibliography  Save this article

Firm versus Market – Coase Revisited

Author

Listed:
  • Plamen D. Tchipev

Abstract

In November 1937 Ronald Harris Coase published his fundamental article "The Nature of the Firm", throwing the gauntlet to neoclassical economics, which could not be responded properly already 80 years. The task presented by Coase to the economic community is simple to failure. Reminding us, that in the economic system, led by the free price movements in which all resources are allocated by the price mechanism, we find, in the words of a contemporary economist, "islands of conscious power in this ocean of unconscious co-operation like lumps of butter, which coagulating in a pale of butter", the great scholar asked: why do we need that at all? Why, in the coordinating role of the market does appear the inevitable figure of entrepreneur-coordinator, who leads the production? Indicating that the company and the market are alternative ways of organizing, Coase released genie out of the bottle, because the answer he provided, actually launched an endless string of debates, hypotheses, competing explanations - what exactly is the nature of the company. This paper aims to provide a more detailed look at the essence of the dilemma posed by R. Coase, paying tribute to the anniversary of the issue of his genius work.

Suggested Citation

  • Plamen D. Tchipev, 2018. "Firm versus Market – Coase Revisited," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 79-85.
  • Handle: RePEc:bas:econst:y:2018:i:5:p:79-85
    as

    Download full text from publisher

    File URL: https://www.ceeol.com/search/article-detail?id=732991
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tony Lawson, 2015. "The nature of the firm and peculiarities of the corporation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 39(1), pages 1-32.
    2. Granovetter, Mark, 1995. "Coase Revisited: Business Groups in the Modern Economy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 4(1), pages 93-130.
    3. Williamson, Oliver E, 1995. "Hierarchies, Markets and Power in the Economy: An Economic Perspective," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 4(1), pages 21-49.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giovanni Dosi & Luigi Marengo & Alessandro Nuvolari, 2019. "Institutions are neither autistic maximizers nor flocks of birds: self-organization, power and learning in human organizations," Chapters, in: Francesca Gagliardi & David Gindis (ed.), Institutions and Evolution of Capitalism, chapter 13, pages 194-213, Edward Elgar Publishing.
    2. Giovanni Dosi & Luigi Marengo & Alessandro Nuvolari, 2020. "Institutions and economic change: some notes on self-organization, power and learning in human organizations," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(1), pages 1-22, March.
    3. Chang-Yang Lee & Ji-Hwan Lee & Ajai S. Gaur, 2017. "Are large business groups conducive to industry innovation? The moderating role of technological appropriability," Asia Pacific Journal of Management, Springer, vol. 34(2), pages 313-337, June.
    4. Rakesh Basant & Pankaj Chandra & Lynn Mytelka, 2001. "Inter-Firm Linkages and Development of Capabilities in the Indian Telecom Software Sector," Economics Study Area Working Papers 14, East-West Center, Economics Study Area.
    5. Shao, Yan & Sun, Lingxia, 2021. "Entrepreneurs’ social capital and venture capital financing," Journal of Business Research, Elsevier, vol. 136(C), pages 499-512.
    6. Ian Carrillo & David Pellow, 2021. "Critical environmental justice and the nature of the firm," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 38(3), pages 815-826, September.
    7. Shastitko, Andrey & Golovanova, Svetlana, 2016. "Meeting blindly… Is Austrian economics useful for dynamic capabilities theory?," Russian Journal of Economics, Elsevier, vol. 2(1), pages 86-110.
    8. Sheaff, Rod & Benson, Lawrence & Farbus, Lou & Schofield, Jill & Mannion, Russell & Reeves, David, 2010. "Network resilience in the face of health system reform," Social Science & Medicine, Elsevier, vol. 70(5), pages 779-786, March.
    9. Nuno Ornelas Martins, 2018. "Justice and the Social Ontology of the Corporation," Journal of Business Ethics, Springer, vol. 153(1), pages 17-28, November.
    10. Mattias Smångs, 2008. "Business Groups in 20th‐Century Swedish Political Economy: A Sociological Perspective," American Journal of Economics and Sociology, Wiley Blackwell, vol. 67(5), pages 889-913, November.
    11. Randall Morck, 2011. "Finance and Governance in Developing Economies," Annual Review of Financial Economics, Annual Reviews, vol. 3(1), pages 375-406, December.
    12. Popli, Manish & Ladkani, Radha M. & Gaur, Ajai S., 2017. "Business group affiliation and post-acquisition performance: An extended resource-based view," Journal of Business Research, Elsevier, vol. 81(C), pages 21-30.
    13. Özlem Yýldýrým-Öktem, 2010. "Generational Differences In Involvement Of Family Members In Governance And Management Of Turkish Family Business Groups And Background Characteristics Of Family Members," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 24(1+2), pages 41-66.
    14. Heejung Byun & Tae-Hyun Kim, 2017. "Identity Claims and Diffusion of Sustainability Report: Evidence from Korean Listed Companies, 2003–2010," Journal of Business Ethics, Springer, vol. 140(3), pages 551-565, February.
    15. Kim, Euysung, 2006. "The impact of family ownership and capital structures on productivity performance of Korean manufacturing firms: Corporate governance and the "chaebol problem"," Journal of the Japanese and International Economies, Elsevier, vol. 20(2), pages 209-233, June.
    16. Bruszt, László & Stark, David, 1996. "Vállalatközi tulajdonosi hálózatok a kelet-európai kapitalizmusban [Inter-enterprise ownership networks in the East European capitalism]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 183-203.
    17. Geoffrey M. Hodgson, 2010. "Limits of Transaction Cost Analysis," Chapters, in: Peter G. Klein & Michael E. Sykuta (ed.), The Elgar Companion to Transaction Cost Economics, chapter 28, Edward Elgar Publishing.
    18. B. Yurtoglu, 2000. "Ownership, Control and Performance of Turkish Listed Firms," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 27(2), pages 193-222, June.
    19. Kuo-Pin Yang & Gavin M. Schwarz, 2016. "A Multilevel Analysis of the Performance Implications of Excess Control in Business Groups," Organization Science, INFORMS, vol. 27(5), pages 1219-1236, October.
    20. Dimitrios Zikos, 2020. "Revisiting the Role of Institutions in Transformative Contexts: Institutional Change and Conflicts," Sustainability, MDPI, vol. 12(21), pages 1-20, October.

    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bas:econst:y:2018:i:5:p:79-85. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Diana Dimitrova (email available below). General contact details of provider: https://edirc.repec.org/data/ikbasbg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.