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Implicit Contracts and the Theory of the Firm / George Baker, Robert Gibbons, Kevin J. Murphy.
- Format:
- Book
- Author/Creator:
- Baker, George.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w6177.
- NBER working paper series no. w6177
- Language:
- English
- Subjects (All):
- Business enterprises--Finance--Mathematical models.
- Business enterprises.
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 1997.
- Cambridge, Mass. : National Bureau of Economic Research, 1997.
- Summary:
- We analyze the role of implicit contracts' (that is, informal agreements supported by" reputation rather than law) both within firms, for example in employment relationships between them, for example as hand-in-glove supplier relationships. We find that the optimal" organizational form is determined largely by what implicit contracts it facilitates. Among other" things, we also show that vertical integration is an efficient response to widely varying supply" prices. Finally, our model suggests why management' (that is, the development and" implementation of unwritten rules and codes of conduct) is essential in organizations. "
- Notes:
- Print version record
- September 1997.
- Includes bibliographical references.
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