• DOI:10.1086/261729
Corpus ID: 15892859

Property Rights and the Nature of the Firm

@article{Hart1990PropertyRA,
  title={Property Rights and the Nature of the Firm},
  author={O. Hart and J. Moore},
  journal={Journal of Political Economy},
  year={1990},
  volume={98},
  pages={1119 - 1158}
}

O. Hart, J. Moore

Published 1990

Business, Economics

Journal of Political Economy

This paper provides a framework for addressing the question of when transactions should be carried out within a firm and when through the market. Following Grossman and Hart, we identify a firm with the assets that its owners control. We argue that the crucial difference for party 1 between owning a firm (integration) and contracting for a service from another party 2 who owns this firm (nonintegration) is that, under integration, party 1 can selectively fire the workers of the firm (including… CONTINUE READING

View on U of Chicago

dash.harvard.edu

Save to Library

Create Alert

Cite

Launch Research Feed