Opportunism, Hold-Up and the (Contractual) Theory of the Firm
This paper considers the role of opportunism in three contractual theories of the firm: rent-seeking theory, property rights theory, and agency theory. In each case I examine whether it is possible to have a functioning contractual theory of the firm without recourse to opportunism. Without opportunism firms may still exist as a result of issues arising from (incomplete) contracting. Far from posing a problem for the theory of the firm, questioning the role of opportunism and the ubiquity of the hold-up problem helps us understand more about the purpose and functions of contracts which go beyond mere incentive alignment.
Volume (Year): 166 (2010)
Issue (Month): 3 (September)
|Contact details of provider:|| Web page: http://www.mohr.de/jite|
|Order Information:|| Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Donald G McFetridge, 1995. "Knowledge, Market Failure and the Multinational Enterprise: A Comment," Journal of International Business Studies, Palgrave Macmillan, vol. 26(2), pages 409-415, June.
- Masten, Scott E & Meehan, James W, Jr & Snyder, Edward A, 1991. "The Costs of Organization," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(1), pages 1-25, Spring.
- Andreas Roider, 2002.
"Asset Ownership and Contractability of Interaction,"
Bonn Econ Discussion Papers
bgse12_2002, University of Bonn, Germany, revised May 2003.
- Andreas Roider, 2004. "Asset Ownership and Contractibility of Interaction," RAND Journal of Economics, The RAND Corporation, vol. 35(4), pages 787-802, Winter.
- Schmitz, Patrick W, 2001.
"The Hold-up Problem and Incomplete Contracts: A Survey of Recent Topics in Contract Theory,"
Bulletin of Economic Research,
Wiley Blackwell, vol. 53(1), pages 1-17, January.
- Schmitz, Patrick W., 2001. "The Hold-Up Problem and Incomplete Contracts: A Survey of Recent Topics in Contract Theory," MPRA Paper 12562, University Library of Munich, Germany.
- Ugo Pagano, 2000.
"Public Markets, Private Orderings and Corporate Governance,"
ESRC Centre for Business Research - Working Papers
wp166, ESRC Centre for Business Research.
- Pagano, Ugo, 2000. "Public markets, private orderings and corporate governance," International Review of Law and Economics, Elsevier, vol. 20(4), pages 453-477, December.
- Garrouste, Pierre & Saussier, Stephane, 2005. "Looking for a theory of the firm: Future challenges," Journal of Economic Behavior & Organization, Elsevier, vol. 58(2), pages 178-199, October.
When requesting a correction, please mention this item's handle: RePEc:mhr:jinste:urn:sici:0932-4569(201009)166:3_479:ohatct_2.0.tx_2-5. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Wolpert)
If references are entirely missing, you can add them using this form.