Corporate Law and Corporate Governance

Production, Information Costs, and Economic Organization

Armen A. Alchian and Harold Demsetz

Year
1972
Venue
American Economic Review
Level
Introductory
American Economic Review cover
Archive-designed coverAmerican Economic Review

Summary

Explains the firm through team production, metering costs, shirking, and monitoring rather than through authority alone. The article links ownership, residual claims, and the monitor's role to information costs, making it central to agency-cost analysis and the economic theory of corporate organization.

Citation

Armen A. Alchian and Harold Demsetz. "Production, Information Costs, and Economic Organization." American Economic Review, 1972.

BibTeX

@article{Alchian1972Production,
  title = {Production, Information Costs, and Economic Organization},
  author = {Armen A. Alchian and Harold Demsetz},
  year = {1972},
  journal = {American Economic Review},
  url = {https://econpapers.repec.org/article/aeaaecrev/v_3a62_3ay_3a1972_3ai_3a5_3ap_3a777-95.htm}
}
Original source: EconPapers

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