"Production, Information Costs, and Economic Organization"

by Alchian, Armen A; Demsetz, Harold (1972)

Abstract

The mark of a capitalistic society is that resources are owned and allocated by such nongovernmental organizations as firms, households, and markets. Resource owners increase productivity through cooperative specialization and this leads to the demand for economic organizations which facilitate cooperation. When a lumber mill employs a cabinetmaker, cooperation between specialists is achieved within a firm, and when a cabinetmaker purchases wood from a lumberman, the cooperation takes place across …

Keywords

Capitalism, Non-Governmental Organisations, Firms, Information Cost, Economic Organisation, Profit-Sharing Firms, Socialist Firms, Corporations, Non-Profit Firms, Mutual Firms, Unions, Team Spirit

Themes

Against Workplace Democracy

Links to Reference

• http://www.jstor.org/stable/1815199
• https://www.jstor.org/stable/1815199
• https://www.jstor.org/stable/pdf/1815199.pdf

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