‘One of the most exciting developments in economics in recent decades has been the emergence of a coherent framework for understanding why organisations have different structures and attributes. There is no better way of learning about this fascinating literature on incomplete information and transaction costs than Martin Ricketts’s accessible and authoritative book. Very highly recommended.’
- J.H. Pencavel, Stanford University
‘Martin Ricketts has succeeded in updating his book with the addition of a completely new section on the burning issue of privatisation policy in East and West, along with a very readable exposition of the new micro-foundation of property rights theory. It is a brilliantly lucid introduction into modern institutional economics, exemplified by the theory of the firm - the best book of its kind on the market.’
- Rudolf Richter, University of Saarland, Germany
To own or not to own? To make or to buy? To franchise or to manage? To contract long or to contract short? To trust or not to trust? To license or not to license? These and other questions are the subject matter of this excellent introduction to the theory of economic organization. This fully updated edition of Martin Ricketts’s 1987 book includes:
• New developments in the property rights theory of the firm • Further extended treatment of cooperative and mutual forms of enterprise • Entirely new sections on transaction cost economics and public policy • New chapters on the economics of privatization and the regulation of ‘natural monopoly’.
In addition, transaction cost, property rights and agency approaches are contrasted, and Austrian and evolutionary criticisms of standard theory are explored. The author applies these theories to a wide range of questions from the choice of piece rates or time rates in contracting to the debate on Anglo-American versus other ‘varieties of capitalism’. Public policy in the fields of regulation and privatization is also considered using the same framework.
Non-specialists will find this book to be an accessible introduction to the main theoretical approaches to economic organization. Students and researchers specializing in the fields of economics and business will find that this third, updated edition of The Economics of Business Enterprise continues to provide stimulating insights suggestive of further research.
