Ex Post and Ex Ante Coordination: Principles of Coherence in Organizations and Markets
In the traditional trade-off between internalization and externalization, economists tend to undervalue the role of intentionality (Williamson 1991) and to accord a dominant place to market coordinating devices (ex post coordination) compared to hierarchical coordinating devices (ex ante coordination). The aim of this paper is to show how the introduction of the concept of coherence, which is frequently invoked by economists in order to apprehend the firm specificities (Holmstrom 1999), may help to revaluate the trade-off between markets and firms in the advantage of the later. In particular, it will be shown that the attributes of coherence in ex post coordinating devices are fundamentally different from the ones that can be found in ex ante coordination systems.
|Date of creation:||Jun 2006|
|Publication status:||Published in Journal of Economic Issues, Newfound Press, 2006, 40 (2), pp.325-332|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00110810|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
References listed on IDEAS
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