BADM 545: Found of Strategy Research, Fall 2009. The costs and benefits of ownership: A theory of vertical and lateral integration ( Grossman and Hart 1986 ). Min-Young Kim. Main Idea 1.
BADM 545: Found of Strategy Research, Fall 2009
The costs and benefits of ownership:A theory of vertical and lateral integration(Grossman and Hart 1986)
Main Idea 1
[All the rights specifically mentioned in the contract]
[All the rights except the specific rights]
Difficulties in writing and enforcing complete contract
(Coase 1937; Klein et al. 1978; Williamson 1979)
Main Idea 2
Transaction Costs Theory
PRT: Grossman and Hart (1986)
Introduction: Definition and Arguments
What is Integration?
Assumptions of the Model
The Model: Assumption
Analysis of the Optimal Contract
The Optimal Structure
The Insurance Industry
Property Right Theory and Other Theories
Kim, J. and Mahoney, J. 2005. Property Rights Theory, Transaction Costs Theory, and Agency Theory: An Organizational Economics Approach to Strategic Management. Managerial and Decision Economics 26(4): 223-242.