The Theory of the Firm
Microeconomics with Endogenous Entrepreneurs, Firms, Markets, and Organizations

The Theory of the Firm presents an innovative general analysis of the economics of the firm.

Daniel F. Spulber (Author)

9780521736602, Cambridge University Press

Paperback, published 6 April 2009

544 pages, 44 b/w illus. 5 tables
25.4 x 17.7 x 2.6 cm, 0.96 kg

'This important book revolutionizes our knowledge and understanding of entrepreneurship. Dan Spulber breaks important new ground in laying out a coherent and compelling theory of entrepreneurship that is sure to impact all scholars and policy makers focusing on entrepreneurship and innovation.' David B. Audretsch, Director, Max Planck Institute of Economics and Distinguished Professor, Indiana University

The Theory of the Firm presents a path-breaking general framework for understanding the economics of the firm. The book addresses why firms exist, how firms are established, and what contributions firms make to the economy. The book presents a new theoretical analysis of the foundations of microeconomics that makes institutions endogenous. Entrepreneurs play a central economic role by establishing firms. In turn, firms create and operate markets and organizations. The book provides innovative models of economic equilibrium that endogenously determine the structure and function of economic institutions. The book proposes an 'intermediation hypothesis' - the establishment of firms depends on the effects of transaction costs and on the extent of the market.

Introduction
Part I. The Theory of the Firm: 1. The consumer
2. The firm
3. Separation of consumer objectives and firm objectives
Part II. The Entrepreneur in Equilibrium: 4. The entrepreneur
5. Competition between entrepreneurs
Part III. Human Capital and Financial Capital: 6. Human capital and the organization of the firm
7. Financial capital and the organization of the firm
Part IV. Intermediation by the Firm: 8. The firm as intermediary in the pure exchange economy
9. The firm versus free riding
Part V. Market Making by the Firm: 10. The firm creates markets
11. The firm in the market for contracts
12. Conclusion.

Subject Areas: International organisations & institutions [LBBU], Business & management [KJ], Economics [KC]