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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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  • Kvaløy, Ola, 2008. "Do norms matter for firm boundaries?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(3), pages 969-975, June.
  • Handle: RePEc:eee:soceco:v:37:y:2008:i:3:p:969-975
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