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Do norms matter for firm boundaries?

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  • Kvaløy, Ola

Abstract

Even though norms have been integrated in the formal theory of the firm, we have not seen a clear-cut relationship between norms and firm boundaries. In a simple game of relationship specific investments, I show that the parties' reputation for being trustworthy may be decisive for optimal asset ownership.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).

Volume (Year): 37 (2008)
Issue (Month): 3 (June)
Pages: 969-975

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Handle: RePEc:eee:soceco:v:37:y:2008:i:3:p:969-975

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Web page: http://www.elsevier.com/locate/inca/620175

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  20. Maija Halonen, 2002. "Reputation And The Allocation Of Ownership," Economic Journal, Royal Economic Society, vol. 112(481), pages 539-558, July.
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