Visible Hands: Governance of Value Creation—Within Firms and Beyond
Name
pandp.20201066.pdf
Description
Published version
Size
465.57 KB
Format
Adobe PDF
Checksum (MD5)
75c0f70d8db5b7cffb2f21b52fb00be2
Author(s)
Gibbons, Robert S.
Date Issued
May 2020
Journal
American Economic Association Papers and Proceedings
Publisher
American Economic Association
Citation
Gibbons, Robert. "Visible Hands: Governance of Value Creation—Within Firms and Beyond." American Economic Association Papers and Proceedings 110 (May 2020): 172-176.
Version
Final published version
Abstract
Economic transactions can be divided into (1) those that are priced versus (2) those that are governed by visible hands, and within the latter (2a) those within a single organization versus (2b) those in nonintegrated settings. Nonintegration is not always “the market” [i.e., (1)]. The conventional distinction between markets versus firms, (1) versus (2a), is misleading. The fundamental distinction is between transactions that are priced versus those that are governed, (1) versus (2). Unifying (2a) with (2b) highlights their commonalities and suggests directions for future research, especially the problem of building (not selecting) an equilibrium.
MIT Department
Sloan School of Management
Terms of Use
Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
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DOI of Published Version
https://doi.org/10.1257/pandp.20201066
