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Two Minds

  • Li Way Lee
Chapter

Abstract

A firm has two minds: the manager’s and the owner’s. In a small firm, the two minds reside in one person: the owner-manager. In a big firm, the two minds reside in separate persons: one in the owner and the other in the manager. I illustrate the separation of ownership and control with network diagrams. Then I review Ronald Coase’s idea that the nature of the firm is management, not production. I find the idea as inspiring as ever.

Keywords

Small firm Big firm Separation of ownership and control Capitalism 

References

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Li Way Lee
    • 1
  1. 1.Department of EconomicsWayne State UniversityDetroitUSA

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