The Capitalist Firm: An *Economic* Approach

Ahh peer review making sure only the most scientific of ideas gets published.  This would be the equivalent of what passes for the scientific literature denying global warming.

The mark of a capitalistic society is that resources are owned and allocated by such non-governmental organizations as firms, households, and markets. Resource owners increase productivity through cooperative specialization and this leads to the demand for economic organizations which facilitate cooperation…..

It is common to see the firm characterized by the power to settle issues by fiat, by authority, or by disciplinary action superior to that available in the conventional market. This is delusion. The firm does not own all its inputs. It has no power of fiat, no authority, no disciplinary action any different in the slightest degree from ordinary market contracting between any two people.

Production, Information Costs, and Economic Organization, Armen A. Alchian and Harold Demsetz (1972 AER).

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