
Contents
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Introduction Introduction
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Thinking about Organizations Thinking about Organizations
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Austrian Capital Theory and the Theory of Organizations Austrian Capital Theory and the Theory of Organizations
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An Austrian Theory of Organizations? An Austrian Theory of Organizations?
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A Judgment-Based Positive Theory A Judgment-Based Positive Theory
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The One-Person Firm The One-Person Firm
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The Multiperson Firm The Multiperson Firm
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Efficient Firm Boundaries Efficient Firm Boundaries
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Internal Organization Internal Organization
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Conclusion Conclusion
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References References
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12 Organizations and Markets
Get accessNicolai Foss is the Rodolfo Debenedetti Professor of Entrepreneurship at the Bocconi University in Milan, Italy.
Pierre Klein is a Professor of International Law, Centre of International Law, Université libre de Bruxelles.
ESSEC Business School, Paris
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Published:10 December 2015
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Abstract
Austrian economics focuses on markets but has much to say about organizations. In particular, Austrian insights on the structure of production, the heterogeneity and subjectivity of resources, the nature of uncertainty, the role of monetary calculation, and the function of the entrepreneur provide solid foundations for a distinctly Austrian theory of organizations. This chapter reviews these insights, discusses recent literature on Austrian economics and the theory of the firm, and suggests new directions for developing and extending an Austrian approach to organizations. In doing so it answers the following questions: Why, do organizations, large and small, emerge and persist? How do they avoid the problem of economic calculation faced by socialist economies? Why do organizations take the shapes they do, why do their characteristics vary over time and across industries, and why do they succeed or fail? Are most organizations stable over time, or do organizations, like markets, adapt and learn? and How do entrepreneurs arrange assets and manage individuals within organizations?
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