Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/3060 
Year of Publication: 
2003
Series/Report no.: 
IZA Discussion Papers No. 882
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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: 
complementarities
plant
firm
JEL: 
J51
J24
J53
J31
D23
Document Type: 
Working Paper

Files in This Item:
File
Size
418.46 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.