Firms, Incomplete Contracts and Organizational Learning

This explorative report proposes that the main problem of economic organization is adaptation to unforeseen contingencies. Nevertheless, flexibility is a fairly ignored issue in the theory of economic organization. This contrasts with much organization theory, where the seeking and processing of information about the organization’s key uncertainties is viewed as a determinant of organizational form. …

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Authority in the Context of Distributed Knowledge

This paper addresses the impact of distributed knowledge on economic organization. The claim that authority is inefficient as a means of coordination in the context of distributed knowledge has become widespread. However, very little analysis has been dedicated to the relation between economic organization and distributed knowledge. This paper concentrates on the role of authority as …

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