The Economics of the Business Firm

The essays in this volume break new ground in the theory of the business firm and its applications in economics. A leading analyst of industrial organization Professor Demsetz critically examines current debates on the existence definition and organization of the firm and discusses issues related to the emerging theory of the firm. He then analyzes the relation among business ownership wealth and economic development. Subsequent essays offer new perspectives on competition profit maximization and rational behavior and shed new light on managers'' compensation antitrust policy and the accuracy of firms'' accounting data.