The Social Contract of the Firm
Subtitle: Economics, Ethics and Organisation (Studies in Economic Ethics and Philosophy)
Contributors: L. Sacconi (Translator)
Edition: 1 edition
Publisher: Springer
Published: June 15, 2000
Language: eng
Format: Hardcover
Number of pages: 229
ISBN-13: 9783540672197
Subjects: Economic theory & philosophy; Political science & theory; Industrial organization (Economic theory); Economics - Microeconomics; Economic Theory; Political Theory; Social contract; Business & Economics; Business / Economics / Finance; Industrial organization (Econo; Sociology; History & Theory - General; Economics - Theory; Development - Sustainable Development; Ethics & Moral Philosophy; Business & Economics / Microeconomics; Codes of Ethics; Fuzzy Sets; Games of Reputation; Incomplete Contracts; Business ethics
First sentence: Coase theorm, a well known result in economic theory, states that, when exclusive property rights are settled and transaction costs (i.e. the costs related to the negotiation and enforcement of contracts and property rights) are equal to zero, then for any configuration of the initial legal rights, market transactions - exchanges of rights, not only of goods - are always able to internalise all the costs, obtaining socially efficient outcomes (Coase, 1960).