Knowledge and Power in the Mechanical Firm: Planning for Profit in Austrian Perspective
This essay draws on the transaction costs model of the firm and an Austrian perspective on the knowledge problem in centrally planned orders to propose an empirically useful Austrian theory of central planning. Afteran initial review of existing theories of the firm, part two develops insights from the calculation debate to sketch a theory of planning centered on the interrelated problems of purpose, information and control in both individual and central planning. Part three joins this theory to the basic framework of the transaction cost model to produce an Austrian theory of the private firm that addresses the relation between knowledge and power in planned orders, and illustrates its principal themes through a discussion of the historical development of American manufacturing in the fifty years prior to World War I.
|Date of creation:||Mar 2003|
|Publication status:||Published The Review of Austrian Economics, 18:1, 55–82, 2005.|
|Contact details of provider:|| Postal: PAC 123, 238 Church Street, Middletown, CT 06459-0007|
Web page: http://www.wesleyan.edu/econ/
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- Foss, Nicolai Juul, 1993. "Theories of the Firm: Contractual and Competence Perspectives," Journal of Evolutionary Economics, Springer, vol. 3(2), pages 127-144, May.
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The Review of Austrian Economics,
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- Ulrich Witt, 1999. "Do Entrepreneurs Need Firms? A Contribution to a Missing Chapter in Austrian Economics," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 11(1), pages 99-109, January.
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- Minkler, Alanson P, 1993. "The Problem with Dispersed Knowledge: Firms in Theory and Practice," Kyklos, Wiley Blackwell, vol. 46(4), pages 569-587.
- Buttrick, John, 1952. "The Inside Contract System," The Journal of Economic History, Cambridge University Press, vol. 12(03), pages 205-221, June.
- Ioannides, Stavros, 1999. "Towards an Austrian Perspective on the Firm," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 11(1-2), pages 77-97.
- Fama, Eugene F, 1980. "Agency Problems and the Theory of the Firm," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 288-307, April.
- Dow, Gregory K., 1987. "The function of authority in transaction cost economics," Journal of Economic Behavior & Organization, Elsevier, vol. 8(1), pages 13-38, March. Full references (including those not matched with items on IDEAS)
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