9 Pages Posted: 26 Jul 2015
Date Written: December 20, 2011
Grossman and Hart’s prominent 1986 article on “The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration” focuses, as its title suggests, on which of a firm’s input suppliers are, or are not, efficiently owned by the firm. This brief essay, prepared for a conference to celebrate the 25th anniversary of that article’s publication, argues that the article’s analysis offers important insight, not just into what a firm owns, but also into who owns the firm.
Keywords: Theory of the Firm, Ownership, Property Rights, Cooperatives, Government
JEL Classification: D23, K22, L22, L30, P13
Suggested Citation: Suggested Citation