Foundations of Law and Economics
The Nature of the Firm
Ronald H. Coase
- Year
- 1937
- Venue
- Economica
- Level
- Introductory
Summary
Asks why firms exist in an economy coordinated partly by prices and market exchange. The article explains the firm as an institutional response to the costs of using the price mechanism, including discovering prices, negotiating contracts, and repeatedly arranging transactions, while also asking why internal organization itself has limits.
Citation
Ronald H. Coase. "The Nature of the Firm." Economica, 1937.
DOI: 10.1111/j.1468-0335.1937.tb00002.x
BibTeX
@article{Coase1937The,
title = {The Nature of the Firm},
author = {Ronald H. Coase},
year = {1937},
journal = {Economica},
doi = {10.1111/j.1468-0335.1937.tb00002.x},
url = {https://doi.org/10.1111/j.1468-0335.1937.tb00002.x}
}