Marrying in the Cathedral: A Framework for the Analysis of Corporate Governance
32 Pages Posted: 29 Sep 2009
Date Written: September 28, 2009
Abstract
The firm can be seen as a centralization of market transactions and as a decentralization of a public ordering which allows the management of joint liabilities. The paper advances the view that the main reason for the firm’s existence is the unification and the internalization of liabilities. From this perspective, Coase's and Fuller's contributions to the theory of the firm can be married within the architecture of Calabresi's Cathedral. Because of specific (dis)investments, fundamental transformations from competition to managed bilateral monopoly take place either in the public or the private sphere and provide an explanation for the ultimate nature of the firm.
Keywords: Corporate Governance, Firms' Liability, Private Orderings, Guido Calabresi
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Organizational Equilibria and Institutional Stability
By Ugo Pagano
-
By Ugo Pagano
-
The Origin of Organizational Species
By Ugo Pagano
-
Ownership, Technology and Institutional Stability
By Ugo Pagano and Bob Rowthorn
-
Public Markets, Private Orderings and Corporate Governance
By Ugo Pagano
-
Incomplete Contracts, Intellectual Property and Institutional Complementarities
By Ugo Pagano and Maria Alessandra Rossi
-
Co-Evolution Paths of Politics, Technology and Corporate Governance
By Marianna Belloc and Ugo Pagano
-
Organizational Equilibria and Production Efficiency
By Ugo Pagano
-
Post-War Institutional Shocks - the Divergence of Italian and Japanese Corporate Governance Models
By Fabrizio Barca, Katsuhito Iwai, ...