theory of the firm
E455284
The theory of the firm is an economic framework that explains why firms exist, how they are structured, and what determines their boundaries and behavior in markets, particularly in relation to transaction costs and contractual arrangements.
All labels observed (1)
| Label | Occurrences |
|---|---|
| theory of the firm canonical | 2 |
How this entity was disambiguated
This entity first appeared as the object of triple T4587058 — resolving that mention is where its identity was fixed. The disambiguator weighed these candidate entities and picked the highlighted one (or “None”, minting a new entity). This is how homonymy is resolved: the same surface form can point to different entities.
NED1
Entity disambiguation (via context triple)
gpt-5-mini-2025-08-07
Target entity: theory of the firm Context triple: [Ronald Coase, knownFor, theory of the firm]
-
A.
behavioral theory of the firm
The behavioral theory of the firm is an organizational and economic framework that explains how companies actually make decisions based on bounded rationality, routines, and internal politics rather than purely profit-maximizing optimization.
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B.
The Theory of Industrial Organization
The Theory of Industrial Organization is a foundational economics textbook by Jean Tirole that systematically develops modern industrial organization theory using game-theoretic tools.
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C.
The Theory of Corporate Finance
The Theory of Corporate Finance is a comprehensive textbook by economist Jean Tirole that systematically develops modern corporate finance theory using tools from contract theory and information economics.
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D.
Theoretical Economics
Theoretical Economics is a peer-reviewed academic journal that publishes research in economic theory, including microeconomic theory, game theory, and related fields.
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E.
The Positive Theory of Capital
The Positive Theory of Capital is a foundational work in Austrian economics that systematically analyzes the nature of capital, interest, and time preference in the production process.
- F. None of above. chosen
- G. Unsure - the case is ambiguous/there is not enough information to decide.
NED2
Entity disambiguation (via description)
gpt-5-mini-2025-08-07
Target entity: theory of the firm Target entity description: The theory of the firm is an economic framework that explains why firms exist, how they are structured, and what determines their boundaries and behavior in markets, particularly in relation to transaction costs and contractual arrangements.
-
A.
behavioral theory of the firm
The behavioral theory of the firm is an organizational and economic framework that explains how companies actually make decisions based on bounded rationality, routines, and internal politics rather than purely profit-maximizing optimization.
-
B.
The Theory of Industrial Organization
The Theory of Industrial Organization is a foundational economics textbook by Jean Tirole that systematically develops modern industrial organization theory using game-theoretic tools.
-
C.
The Theory of Corporate Finance
The Theory of Corporate Finance is a comprehensive textbook by economist Jean Tirole that systematically develops modern corporate finance theory using tools from contract theory and information economics.
-
D.
Theoretical Economics
Theoretical Economics is a peer-reviewed academic journal that publishes research in economic theory, including microeconomic theory, game theory, and related fields.
-
E.
The Positive Theory of Capital
The Positive Theory of Capital is a foundational work in Austrian economics that systematically analyzes the nature of capital, interest, and time preference in the production process.
- F. None of above. chosen
Statements (105)
| Predicate | Object |
|---|---|
| instanceOf |
economic theory
ⓘ
microeconomic theory ⓘ theory in economics ⓘ |
| addressesQuestion |
How do firms behave and compete in different market structures?
ⓘ
How should firms be structured to minimize costs and align incentives? ⓘ What determines the boundaries between firms and markets? ⓘ Why do firms exist instead of all production being organized through markets? ⓘ |
| field |
industrial organization
ⓘ
institutional economics ⓘ managerial economics ⓘ microeconomics ⓘ |
| hasApproach |
Coasian theory of the firm
ⓘ
linked to:
"The Nature of the Firm"
agency theory of the firm ⓘ behavioral theory of the firm ⓘ contractual theory of the firm ⓘ dynamic capabilities view of the firm ⓘ evolutionary theory of the firm ⓘ institutional theory of the firm ⓘ knowledge-based theory of the firm ⓘ managerial theory of the firm ⓘ neoclassical theory of the firm ⓘ property rights theory of the firm ⓘ relational view of the firm ⓘ resource-based view of the firm ⓘ transaction cost theory of the firm ⓘ |
| keyConcept |
X-inefficiency
ⓘ
adverse selection ⓘ asset specificity ⓘ bounded rationality ⓘ capabilities ⓘ economies of scale ⓘ economies of scope ⓘ firm-specific assets ⓘ governance structures ⓘ hierarchies ⓘ hold-up problem ⓘ hybrid governance forms ⓘ incomplete contracts ⓘ knowledge integration ⓘ managerial discretion ⓘ markets ⓘ moral hazard ⓘ opportunism ⓘ organizational learning ⓘ organizational slack ⓘ principal–agent problem ⓘ profit maximization assumption ⓘ residual control rights ⓘ residual income rights ⓘ routines ⓘ satisficing behavior ⓘ transaction costs ⓘ |
| relatedTo |
Armen Alchian
ⓘ
Edith Penrose ⓘ
linked to:
Joan Robinson
Harold Demsetz ⓘ James March ⓘ
linked to:
James G. March
Joseph Schumpeter ⓘ Michael Jensen ⓘ
linked to:
Michael C. Jensen
Oliver Williamson ⓘ
linked to:
Oliver E. Williamson
Richard Cyert ⓘ
linked to:
Richard M. Cyert
Ronald Coase ⓘ William Meckling ⓘ |
| studies |
agency problems
ⓘ
behavior of firms in markets ⓘ boundaries of firms ⓘ competition between firms ⓘ contractual arrangements within firms ⓘ coordination of specialized assets ⓘ coordination within firms ⓘ corporate governance ⓘ cost minimization ⓘ dynamic capabilities of firms ⓘ entrepreneurial function of firms ⓘ existence of firms ⓘ firm boundaries in relation to markets ⓘ firm decision-making ⓘ firm growth ⓘ firm size ⓘ hierarchies and authority in firms ⓘ incomplete contracts ⓘ innovation within firms ⓘ internal organization of firms ⓘ knowledge and information within firms ⓘ long-term contracts ⓘ make-or-buy decisions ⓘ market power of firms ⓘ market–hierarchy trade-off ⓘ monitoring and incentives in firms ⓘ organizational structure of firms ⓘ output decisions ⓘ outsourcing decisions ⓘ ownership structure of firms ⓘ pricing decisions ⓘ principal–agent relationships ⓘ production decisions ⓘ profit maximization ⓘ property rights allocation ⓘ relational contracts ⓘ relationship between firms and markets ⓘ resource allocation within firms ⓘ risk-bearing by firms ⓘ routines and capabilities of firms ⓘ team production ⓘ transaction costs ⓘ vertical integration ⓘ |
How these facts were elicited
The pipeline generated the facts above by prompting gpt-5.1 with this entity's name + description and the instruction below.
Instruction
You are a knowledge base construction expert. Given a subject entity and a description of it, return factual statements that you know for the subject as a JSON list of dictionaries(triples), where keys must be "subject", "predicate" and "object". The number of facts may be very high, between 25 to 50 or more, for very popular subjects. For less popular subjects, the number of facts can be very low, like 5 or 10. # Requirements - If you don't know the subject at all, return an empty list. - If the subject is not a named entity, return an empty list. - Include at least one triple where predicate is "instanceOf". - Do not get too wordy. - Separate several objects into multiple triples with one object.
Input
Subject: theory of the firm Description of subject: The theory of the firm is an economic framework that explains why firms exist, how they are structured, and what determines their boundaries and behavior in markets, particularly in relation to transaction costs and contractual arrangements.
Referenced by (2)
Full triples — surface form annotated when it differs from this entity's canonical label.
subject linked to:
"The Nature of the Firm"