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The labor-managed firm, Oliver Williamson, and me
Published online by Cambridge University Press: 07 June 2021
Abstract
More than 30 years ago, I engaged in a debate with Oliver Williamson over the theoretical structure of transaction cost economics (TCE). This debate had its origins in our conflicting views of the labor-managed firm (LMF). Williamson believed that such firms were rare due to their inefficiency while I believed they might be rare due to market failures. Here I clarify my criticisms of TCE and contrast Williamson's view of the LMF with my own approach. I discuss empirical evidence that can distinguish between these two approaches and take up Williamson's challenge to identify policy interventions that could yield net social gains.
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- Research Article
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- Copyright © The Author(s), 2021. Published by Cambridge University Press on behalf of Millennium Economics Ltd.
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