Equilibrium, outcomes, and the economics of organization
Most empirical work in the economics of organization consists of theory-testing exercises, where the theories under examination rely on optimality principles but not equilibrium. This paper discusses recent attempts to bring equilibrium analysis into the economics of organization, highlighting the types of research questions that researchers can investigate and the evidentiary and analytical inputs necessary in such approaches.
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"The Cost and Benefits of Ownership: A Theory of Vertical and Lateral Integration,"
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- Luis Garicano & Esteban Rossi-Hansberg, 2005. "Organization and Inequality in a Knowledge Economy," NBER Working Papers 11458, National Bureau of Economic Research, Inc.
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