The Review of Austrian Economics

, Volume 26, Issue 3, pp 247–258

The Austrian theory of the firm: Retrospect and prospect

Article

Abstract

Using as a focusing device the famous arguments of Coase (Economica 4(16), 386–405 1937) and Hayek (The American Economic Review 35(4): 519–530 1945), I sketch in bold strokes what an Austrian theory of the firm would look like. Such a theory would pay serious attention to issues of knowledge, uncertainty, change, and complementarity. I describe a literature in which much of this theory has already been constructed; make connections to closely related literatures in economics and management; and suggest directions for future development.

Keywords

Organization Transaction costs Capabilities Vertical integration Tacit knowledge Uncertainty 

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Copyright information

© Springer Science+Business Media, LLC 2012

Authors and Affiliations

  1. 1.The University of ConnecticutStorrsUSA

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