The Firm and the Authority Relation: Hierarchy vs. Organization

Austrian Economic Perspectives on Market Organization, G. Nell (ed.). New York: Palgrave Macmillan, Forthcoming

32 Pages Posted: 12 Oct 2013 Last revised: 25 Oct 2013

See all articles by Per L. Bylund

Per L. Bylund

School of Entrepreneurship; Ratio Institute; Ludwig von Mises Institute

Date Written: October 1, 2013

Abstract

The modern theory of economic organization asserts that the firm at its core consists of an “authority relation,” and that this is what distinguishes the firm from production processes coordinated by voluntary exchange in the market. This article expounds on and problematizes the uses of this concept in the literature, analyzes the implications, and discusses whether it is sufficient and/or necessary for formal organizing in the market.

Keywords: theory of the firm, authority

Suggested Citation

Bylund, Per L., The Firm and the Authority Relation: Hierarchy vs. Organization (October 1, 2013). Austrian Economic Perspectives on Market Organization, G. Nell (ed.). New York: Palgrave Macmillan, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2339202

Per L. Bylund (Contact Author)

School of Entrepreneurship ( email )

Oklahoma State University
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4057444301 (Phone)

HOME PAGE: http://https://business.okstate.edu/directory/bylund-per-694946.html

Ratio Institute ( email )

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SE-103 64 Stockholm
Sweden

Ludwig von Mises Institute ( email )

Auburn, AL
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HOME PAGE: http://mises.org/bylund

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