Surplus, Contractibility and Theory of the Firm

Zhongwei Wu

doi:doi:10.11648/j.ijebo.20180601.11

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Surplus, Contractibility and Theory of the Firm

Zhongwei Wu

Received: 24 December 2017 Accepted: 10 January 2018 Published: 26 January 2018

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Abstract

A theory of the firm is advanced as a unified property rights for surplus created by cooperative activity. This differs from traditional transaction cost literature which views the firm as a governance structure. Individual purposive entities act in their own interests, within or without a firm. Only contractible inputs are coordinated for joint surplus maximization. Each party determines her non-contractible inputs for her own benefits, which explain many observed firm phenomena. An equilibrium models are developed for the firm and used to explain the questions of firm existence, boundary, and ownership.

DOI	10.11648/j.ijebo.20180601.11
Published in	International Journal of Economic Behavior and Organization (Volume 6, Issue 1, March 2018)
Page(s)	1-10
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Firm, Surplus, Contractibility, Equilibrium

References

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Zhongwei Wu. (2018). Surplus, Contractibility and Theory of the Firm. International Journal of Economic Behavior and Organization, 6(1), 1-10. https://doi.org/10.11648/j.ijebo.20180601.11

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ACS Style

Zhongwei Wu. Surplus, Contractibility and Theory of the Firm. Int. J. Econ. Behav. Organ. 2018, 6(1), 1-10. doi: 10.11648/j.ijebo.20180601.11

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AMA Style

Zhongwei Wu. Surplus, Contractibility and Theory of the Firm. Int J Econ Behav Organ. 2018;6(1):1-10. doi: 10.11648/j.ijebo.20180601.11

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@article{10.11648/j.ijebo.20180601.11,
  author = {Zhongwei Wu},
  title = {Surplus, Contractibility and Theory of the Firm},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {6},
  number = {1},
  pages = {1-10},
  doi = {10.11648/j.ijebo.20180601.11},
  url = {https://doi.org/10.11648/j.ijebo.20180601.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20180601.11},
  abstract = {A theory of the firm is advanced as a unified property rights for surplus created by cooperative activity. This differs from traditional transaction cost literature which views the firm as a governance structure. Individual purposive entities act in their own interests, within or without a firm. Only contractible inputs are coordinated for joint surplus maximization. Each party determines her non-contractible inputs for her own benefits, which explain many observed firm phenomena. An equilibrium models are developed for the firm and used to explain the questions of firm existence, boundary, and ownership.},
 year = {2018}
}

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TY  - JOUR
T1  - Surplus, Contractibility and Theory of the Firm
AU  - Zhongwei Wu
Y1  - 2018/01/26
PY  - 2018
N1  - https://doi.org/10.11648/j.ijebo.20180601.11
DO  - 10.11648/j.ijebo.20180601.11
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 1
EP  - 10
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20180601.11
AB  - A theory of the firm is advanced as a unified property rights for surplus created by cooperative activity. This differs from traditional transaction cost literature which views the firm as a governance structure. Individual purposive entities act in their own interests, within or without a firm. Only contractible inputs are coordinated for joint surplus maximization. Each party determines her non-contractible inputs for her own benefits, which explain many observed firm phenomena. An equilibrium models are developed for the firm and used to explain the questions of firm existence, boundary, and ownership.
VL  - 6
IS  - 1
ER  -

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Author Information

Zhongwei Wu

Seix Investment Advisors LLC, Park Ridge, USA

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APA Style

Zhongwei Wu. (2018). Surplus, Contractibility and Theory of the Firm. International Journal of Economic Behavior and Organization, 6(1), 1-10. https://doi.org/10.11648/j.ijebo.20180601.11

Copy | Download

ACS Style

Zhongwei Wu. Surplus, Contractibility and Theory of the Firm. Int. J. Econ. Behav. Organ. 2018, 6(1), 1-10. doi: 10.11648/j.ijebo.20180601.11

Copy | Download

AMA Style

Zhongwei Wu. Surplus, Contractibility and Theory of the Firm. Int J Econ Behav Organ. 2018;6(1):1-10. doi: 10.11648/j.ijebo.20180601.11

Copy | Download

@article{10.11648/j.ijebo.20180601.11,
  author = {Zhongwei Wu},
  title = {Surplus, Contractibility and Theory of the Firm},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {6},
  number = {1},
  pages = {1-10},
  doi = {10.11648/j.ijebo.20180601.11},
  url = {https://doi.org/10.11648/j.ijebo.20180601.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20180601.11},
  abstract = {A theory of the firm is advanced as a unified property rights for surplus created by cooperative activity. This differs from traditional transaction cost literature which views the firm as a governance structure. Individual purposive entities act in their own interests, within or without a firm. Only contractible inputs are coordinated for joint surplus maximization. Each party determines her non-contractible inputs for her own benefits, which explain many observed firm phenomena. An equilibrium models are developed for the firm and used to explain the questions of firm existence, boundary, and ownership.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - Surplus, Contractibility and Theory of the Firm
AU  - Zhongwei Wu
Y1  - 2018/01/26
PY  - 2018
N1  - https://doi.org/10.11648/j.ijebo.20180601.11
DO  - 10.11648/j.ijebo.20180601.11
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 1
EP  - 10
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20180601.11
AB  - A theory of the firm is advanced as a unified property rights for surplus created by cooperative activity. This differs from traditional transaction cost literature which views the firm as a governance structure. Individual purposive entities act in their own interests, within or without a firm. Only contractible inputs are coordinated for joint surplus maximization. Each party determines her non-contractible inputs for her own benefits, which explain many observed firm phenomena. An equilibrium models are developed for the firm and used to explain the questions of firm existence, boundary, and ownership.
VL  - 6
IS  - 1
ER  -

Copy | Download