BUS 374 Lecture Notes - Lecture 2: Ronald Coase, Economica
9 Mar 2016
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Document Summary
In the 1930"s ronald coase (1937) released an article regarding the nature of the firm . In his article coase (1937) explains the components, benefits, and changing factors relating to firms. In completing his research coase (1937) concludes some viable reasons as to why organizations such as firms exist in a capitalistic society. Coase (1937) identifies a discrepancy between economic resource allocation and business leaders" role on these allocations. The task of this memo is to answer the question of why do organizations exist? using the principle benefits of a firm in coase"s article. Our group will accomplish this by examining an article that challenges a select few of coase"s arguments. One specific argument coase (1937) makes that is to be challenged is how technology affects transaction costs. This argument will be investigated in further detail later on. Prior to these investigations,it necessary to lay out coase"s main arguments and assumptions.
