Tuesday, November 29, 2016

Holmstrom's an ace

He is worth his weight n surplus value !

Corporations are the organization he explains

They combine Alchian's  monitors  ie hierarchy crucial to a viable market embedded firm
as opposed to
A Contrivance of equals ie a partnership  system  via ing for revenue in competitive markets

Yes monitoring plus absentee ownership => corporations in holmstrom's lingo

Henc forth your comrade in arms OP

Will be implicitly invoking this distinction
when talking of corporations v the more generic term firms