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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 166 (2010)
Issue (Month): 3 (September)
|Contact details of provider:|| Web page: https://www.mohr.de/jite|
|Order Information:|| Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany|
References listed on IDEAS
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.:
- 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.
- Pierre Garrouste & Stéphane Saussier, 2005. "Looking for a theory of the firm: future challenges," Post-Print halshs-01300351, HAL.
- Pierre Garrouste & Stéphane Saussier, 2005. "Looking for a theory of the firm: future challenges," Post-Print halshs-00274280, HAL.
- Pagano, Ugo, 2000. "Public markets, private orderings and corporate governance," International Review of Law and Economics, Elsevier, vol. 20(4), pages 453-477, December.
- Ugo Pagano, 2000. "Public Markets, Private Orderings and Corporate Governance," Working Papers wp166, Centre for Business Research, University of Cambridge.
- 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.
- 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.
- H. B. Malmgren, 1961. "Information, Expectations and the Theory of the Firm," The Quarterly Journal of Economics, Oxford University Press, vol. 75(3), pages 399-421.
- Donald G McFetridge, 1995. "Knowledge, Market Failure and the Multinational Enterprise: A Comment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(2), pages 409-415, June.
- Richard N. Langlois, 1995. "Transaction Costs, Production Costs, and the Passage of Time," Working papers 1995-03, University of Connecticut, Department of Economics.
- Andreas Roider, 2004. "Asset Ownership and Contractibility of Interaction," RAND Journal of Economics, The RAND Corporation, vol. 35(4), pages 787-802, Winter.
- Andreas Roider, 2002. "Asset Ownership and Contractability of Interaction," Bonn Econ Discussion Papers bgse12_2002, University of Bonn, Germany, revised May 2003.
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.