The Cooperative Nature of the Firm

A study of price and the organization of firms using game theory and neoclassical economics.

Tatsuro Ichiishi (Author)

9780521414449, Cambridge University Press

Hardback, published 17 June 1993

232 pages
23.5 x 15.4 x 2 cm, 0.443 kg

" This is an important analysis of the modern economy['s two major resource allocation mechanisms: the price mechanism and a mechanism instituted by the firm. Professor Ichiishi presents a ground-breaking theory which biews firms as organizations characterized by diversity of interest among their members. He contributes original insights to the theory of the firm, cooperative game theory, and general equilibrium analysis theory. New York Review of Books

This book is an analysis of the modern economy's two major resource allocation mechanisms. The price mechanism has been subject to extensive examination by neoclassical economists, but there has been relatively little attention paid to the impact of the organization of firms on allocation. Professor Ichiishi presents a distinctive theory of the firm which views firms as organizations characterized by diversity of interest among their members, but an acceptance of a coordinated choice of activities: a coalition formed when people play a cooperative game. Using a theory embodying both the neoclassical market mechanism, and the cooperative game, the author derives a number of original results thereby contributing to the theory of the firm, cooperative game theory, and general equilibrium analysis theory.

Preface
1. Elements of the theory of the firm
2. Descriptive cooperative game theory
3. General equilibrium analysis of the nature of the firm
4. Welfare implications of the nature of the firm
5. Normative theory of production economy with increasing returns to scale
6. Stable hierarchical structures
References
Index.

Subject Areas: Personnel & human resources management [KJMV2]