Tagged: Theory of the firm

No Ordinary Woman: The Life of Edith Penrose - The Dismal Science

Paul Walker Jan 22, 2018

At the Marginal Revolution blog Tyler Cowen writes on the new biography of economist Edith Penrose, No Ordinary Woman: The Life of Edith Penrose, by Angela Penrose. Cowen writes, What a dramatic and eventful book. Edith Penrose (1914-1996) is a not so well-known but highly underrated economist, with her … Read More

Are NZ First really as xenophobic and economically illiterate as this makes them sound? - The Dismal Science

Paul Walker Jul 29, 2015

An article at Voxy.co.nz tells us that English concedes NZ farms better off in NZ ownership - NZ First. The article states,The government has finally admitted its folly over foreign ownership of New Zealand’s farms, says New Zealand First."When questioned in Parliament yesterday, Finance Minister Bill English first parroted the government line that Landcorp buying Crafar … Read More

Risk aversion and the firm - The Dismal Science

Paul Walker May 03, 2015

A bit over a week ago in the comments to a post James asked,Can I make a request for a topic? Since you're the resident expert on the theory of the firm, can you write something about any work that's been done on risk averse firms? (I.e. in contrast to the standard assumption about risk neutral firms). Does … Read More

Does vertical integration decrease prices? - The Dismal Science

Paul Walker May 01, 2015

The double marginalization problem is a classic problem with applications in industrial organization, innovation policy and development. The problem is what happens to social welfare, prices, and profits when one monopoly sells to another monopoly. Below is a video discussion of the double marginalization problem by Alex Tabarrok of George Mason University from MRUniveristy, The double … Read More

How long do firms live? - The Dismal Science

Paul Walker Apr 23, 2015

Many commentators, even today, argue that the economy and the nation are controlled by powerful, large, very long lived corporations. John Kenneth Galbraith is perhaps the most (in)famous economist who argued along these lines. He argued that in the industrial sectors of the economy, which are composed of the largest corporations - think S&P 500 companies, the principal function of … Read More

Effect of board quotas on female labour market outcomes in Norway - The Dismal Science

Paul Walker Apr 01, 2015

And the short answer is, not much.After Norway passed a law, in late 2003, mandating that public limited-liability corporations create boards with no less than 40 percent of each gender represented, the number and quality of women board directors rose and the pay gap vis-a-vis male board members shrank. But 10 years into this experiment, which now is being copied … Read More