The firm as a pool of factor complementarities

Arbeitspapier

This paper presents a new approach to the theory of the firm by identifying factor complementarities as central to the determination of the firm's boundaries. The factor complementarities may take a variety of forms: technological and informational complementarities, as well as economies of scale and scope. We examine the tradeoff between the gains from these complementarities and transactions costs. In so doing, we must abandon the standard dichotomy between the determinants of plant size and firm size. The influence of factor complementarities on firm size is examined in partial and general equilibrium frameworks.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IUI Working Paper ; No. 598

Classification and Topics

• Classification: Wirtschaft ; Production and Organizations: General ; Market Structure, Pricing, and Design: General ; Information, Knowledge, and Uncertainty: General
• Subject: Boundary of Firm ; Complementarities of Production ; Transaction Costs ; Theorie der Unternehmung ; Produktionsfaktor ; Faktorsubstitution ; Transaktionskosten ; Betriebsgröße ; Allgemeines Gleichgewicht ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lindbeck, Assar ; Snower, Dennis J.
• Event: Veröffentlichung
• (who): The Research Institute of Industrial Economics (IUI)
• (where): Stockholm
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/3041
• Last update: 10.03.2025, 11:44 AM CET