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Title:The firm as a pool of factor complementarities PDF Logo
Authors:Lindbeck, Assar
Snower, Dennis J.
Issue Date:2003
Citation:[Series:] IZA discussion papers [Editor:] Forschungsinstitut zur Zukunft der Arbeit, Bonn [No.:] 882
Series/Report no.:IZA Discussion paper series 882
Abstract:This paper presents a new approach to the theory of the firm by identifying factor complementarities as central to the determination of the firm?s boundaries. The factor complementarities may take a variety of forms: technological and informational complementarities, as well as economies of scale and scope. We examine the tradeoff between the gains from these complementarities and transactions costs. In so doing, we must abandon the standard dichotomy between the determinants of plant size and firm size. The influence of factor complementarities on firm size is examined in partial and general equilibrium frameworks.
Subjects:firm , complementarities , plant
JEL:J51
J24
J53
J31
D23
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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