Pricing Theory of the Firm in Perfect Competition

1999 ◽  
pp. 115-128
Author(s):  
Masudul Alam Choudhury
Keyword(s):  
Theory Of The Firm ◽  
Perfect Competition ◽  
Pricing Theory

A Historical Comparison of Resource-Based Theory and Five Schools of Thought Within Industrial Organization Economics: Do We Have a New Theory of the Firm?

1991 ◽  
Vol 17 (1) ◽  
pp. 121-154 ◽  
Author(s):  
Kathleen R. Conner
Keyword(s):  
Industrial Organization ◽  
Major Element ◽  
Theory Of The Firm ◽  
Perfect Competition ◽  
Historical Evolution ◽  
Transaction Cost Theory ◽  
Strategy Research ◽  
Resource Based View ◽  
Historical Comparison ◽  
Resource Based Theory

A resource-based approach to strategic management focuses on costly-to-copy attributes of the firm as sources of economic rents and, therefore, as the fundamental drivers of performance and competitive advantage. Interest presently exists in whether explicit acknowledgement of the resource-based view may form the kernel of a unifying paradigm for strategy research. This article addresses the degree to which a resource-based view represents a fundamentally different approach from theories used in industrial organization (10) economics. The central thesis is that, put informal terms, the resource-based approach is reaching for a theory of the firm. To determine its distinctiveness in comparison to IO, therefore, an appropriate comparison is with other theories of the firm developed within that tradition. Section I summarizes and analyzes five theories that have been significant in the historical evolution of IO. These are neoclassical theory's perfect competition model, Bain-type IO, the Schumpeterian and Chicago responses, and transaction cost theory. The first part of Section II analyzes the resource-based approach in terms of similarities to and differencesfrom these IO-related theories. The conclusion is that resource-based theory both incorporates and rejects at least one major element from each of them; thus resource-based theory reflects a strong IO heritage, but at the same time incorporates fundamental differences from any one of these theories. The second part of Section II analyzes resource-based theory as a new theory of the firm.

Hedge Fund Pricing

2017 ◽  
Author(s):  
David Hampton
Keyword(s):  
Asset Pricing ◽  
Hedge Funds ◽  
Hedge Fund ◽  
Theory Of The Firm ◽  
Fund Managers ◽  
Asset Pricing Theory ◽  
Funds Of Hedge Funds ◽  
Pricing Theory ◽  
Computational Platform ◽  
Hedge Fund Performance

The two main differentiating features of hedge fund managers compared to traditional investment managers are their ability to leverage and to take both short and long positions. Asset-pricing models used in traditional investment management appraisal have evolved to take these two features into account to correctly specify the pricing of hedge funds. Modern hedge fund asset-pricing theory has its roots in two venerable fields of financial economics research: capital asset pricing and the theory of the firm. This chapter presents the theory and intuition behind the most widely used models for hedge fund performance analysis. MATLAB is used as a computational platform for examples in the chapter using 10 hypothetical hedge fund return vectors. Quants and managers of funds of hedge funds deal mostly with data as presented in net monthly column vectors typically in a Microsoft Excel format.

The “Alternative” Theories of Knight and Coase, and the Modern Theory of the Firm

1996 ◽  
Vol 18 (1) ◽  
pp. 76-95 ◽  
Author(s):  
Nicolai J. Foss
Keyword(s):  
Theory Of The Firm ◽  
Fiftieth Anniversary ◽  
Perfect Competition ◽  
Economic Organization ◽  
Modern Theory ◽  
Risk And Uncertainty ◽  
Risk Uncertainty ◽  
Alternative Theories

In his contribution to the 1987 conference that celebrated the fiftieth anniversary of Ronald Coase's “The Nature of the Firm” (1937), Harold Demsetz noted that from the birth of modern economics to 1970, “only two works seem to have been written about the theory of the firm that have altered the perspectives of the profession: Knight's Risk, Uncertainty, and Profit (1921) and Coase's ‘The Nature of the Firm’” (Demsetz 1993, in Williamson and Winter 1993, p. 159). It is easy to feel uncomfortable with this observation. First, Coase's article was ignored for decades. Second, Knight's book did not receive much attention because of its theory of economic organization, but because of its statement of the theory of perfect competition (Stigler 1957; Machovec 1995), its distinction between risk and uncertainty, and its theory of profits (see, e.g., Boulding 1942 and Papandreou 1952).'

scholarly journals MENELISIK INDUSTRI DAN STRUKTUR PASAR MEDIA MASSA DI INDONESIA

2018 ◽  
Vol 8 (2) ◽  
Author(s):  
Rangga Saptya Mohamad Permana ◽  
Nessa Suzan
Keyword(s):  
Mass Media ◽  
New Media ◽  
Digital Media ◽  
Monopolistic Competition ◽  
Theory Of The Firm ◽  
Perfect Competition ◽  
Media Industry ◽  
Media Management ◽  
The Mass Media ◽  
Media Market

Competition in the business and mass media industry globally began to be felt in Indonesia. This is evident in the structure of the mass media market in Indonesia, where media conglomeration has become commonplace. The industry and structure of the mass media in Indonesia has developed with many variants of mass media that can be consumed by audiences, whether they are conventional media types (old media) or internet based digital media (new media). The purpose of the research in this article is to find out the reality of industry and the structure of the mass media market in Indonesia. The research in this article uses qualitative research methods, precisely the descriptive-qualitative method, by focusing data from the literature review. The results of the research show that industrial conditions and the structure of the mass media market in Indonesia can be viewed from several perspectives, i.e. the number of media buyers and sellers, product differentiation, and barriers to competition. Meanwhile, to explore the structure of the mass media market in Indonesia, we can use The Theory of The Firm, which consists of four types of markets. The four types of markets are monopoly market, oligopoly market, monopolistic competition market, and perfect competition market. Media management from an art perspective can be used as a basis for the media industry; and globally, industry and the structure of the mass media market in Indonesia are not much different from other countries that adhere to the ideology of democracy in the world.

Vertical Restrictions: Development of Theory, Antitrust Legislation and Enforcement

2010 ◽  
pp. 110-122 ◽  
Author(s):  
S. Avdasheva ◽  
N. Dzagurova
Keyword(s):  
Institutional Theory ◽  
Institutional Economics ◽  
Theory Of The Firm ◽  
New Institutional Economics ◽  
Hierarchical Organization ◽  
Vertical Restraints ◽  
New Institutional Theory ◽  
Antitrust Laws ◽  
Antitrust Legislation ◽  
Market Organization

The article examines the interpretation of vertical restraints in Chicago, post-Chicago and New Institutional Economics approaches, as well as the reflection of these approaches in the application of antitrust laws. The main difference between neoclassical and new institutional analysis of vertical restraints is that the former compares the results of their use with market organization outcomes, and assesses mainly horizontal effects, while the latter focuses on the analysis of vertical effects, comparing the results of vertical restraints application with hierarchical organization. Accordingly, the evaluation of vertical restraints impact on competition differs radically. The approach of the New Institutional Theory of the firm seems fruitful for Russian markets.

The Economic Theory of the Firm: A Generalization

2012 ◽  
pp. 41-66 ◽  
Author(s):  
M. Storchevoy
Keyword(s):  
Economic Theory ◽  
General Theory ◽  
Contract Theory ◽  
Theory Of The Firm ◽  
Material Structure ◽  
Structural Factors ◽  
Boundaries Of The Firm ◽  
Opportunistic Behaviour ◽  
New Variant

The paper deals with development of a general theory of the firm. It discusses the demand for such a theory, reviews existing approaches to its generalization, and offers a new variant of general theory of the firm based on the contract theory. The theory is based on minimization of opportunistic behaviour determined by the material structure of production (a classification of ten structural factors is offered). This framework is applied to the analysis of three boundaries problems (boundaries of the job, boundaries of the unit, boundaries of the firm) and five integration dilemmas (vertical, horizontal, functional, related, and conglomerate).

Theory of the firm, Supply Chain management, and relationship marketing

2014 ◽  
pp. 40-60
Author(s):  
M. Storchevoy
Keyword(s):  
Economic Theory ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Relationship Marketing ◽  
Theory Of The Firm ◽  
Chain Management

The paper studies through the lens of the economic theory of the firm the development of two managerial disciplines: supply chain management and relationship marketing. The author demonstrates which ideas have been borrowed by these disciplines from the economic theory of the firm, and in what extent their implications may be useful for the latter.

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