In even the most market-oriented economies, most economic transactions occur not in markets but inside managed organizations, particularly business firms. Organizational economics seeks to understand the nature and workings of such organizations and their impact on economic performance. This landmark book assembles the leading figures in organizational economics to present the first comprehensive view of both the current state of research in this fast-emerging field and where it might be headed. "The Handbook of Organizational Economics" surveys the major theories, evidence, and methods used in the field. It displays the breadth of topics in organizational economics, including the roles of individuals and groups in organizations, organizational structures and processes, the boundaries of the firm, contracts between and within firms, and more. The defining book on the subject, "The Handbook of Organizational Economics" is essential reading for researchers and students looking to understand this emerging field in economics. It presents the first comprehensive treatment of organizational economics. It features contributions by leaders in the field. It unifies and extends existing literatures. It describes theoretical and empirical methods used today.
Contributors ix Introduction 1 Robert Gibbons and John Roberts PART I FOUNDATIONS 1 Complementarity in Organizations 11 Erik Brynjolfsson and Paul Milgrom 2 Economic Theories of Incentives in Organizations 56 Robert Gibbons and John Roberts 3 Property Rights 100 Ilya Segal and Michael D.Whinston 4 Transaction Cost Economics 159 Steven Tadelis and Oliver E.Williamson PART II METHODS 5 Clinical Papers in Organizational Economics 193 George P. Baker and Ricard Gil 6 Experimental Organizational Economics 213 Colin F. Camerer and Roberto A.Weber 7 Insider Econometrics 263 Casey Ichniowski and Kathryn Shaw PART III WITHIN FIRMS: INDIVIDUALS AND GROUPS 8 Employment as an Economic and a Social Relationship 315 James N. Baron and David M. Kreps 9 Authority in Organizations 342 Patrick Bolton and Mathias Dewatripont 10 Decisions in Organizations 373 Robert Gibbons, Niko Matouschek, and John Roberts 11 Leadership and Corporate Culture 432 Benjamin E. Hermalin 12 Personnel Economics 479 Edward P. Lazear and Paul Oyer 13 Theory and Evidence in Internal LaborMarkets 520 Michael Waldman PART IV WITHIN FIRMS: STRUCTURES AND PROCESSES 14 Technological Innovation and Organizations 575 Pierre Azoulay and Josh Lerner 15 Hierarchies and the Division of Labor 604 Luis Garicano and Timothy Van Zandt 16 Internal Capital Markets 655 Robert Gertner and David Scharfstein 17 What Do Managers Do? 680 Robert Gibbons and Rebecca Henderson 18 Corporate Governance 732 Benjamin E. Hermalin 19 Incentives in Hierarchies 764 Dilip Mookherjee 20 Strategy and Organization 799 John Roberts and Garth Saloner PART V BETWEEN FIRMS 21 Vertical Integration and Market Structure 853 Timothy Bresnahan and Jonathan Levin 22 Ownership and Organizational Form 891 Henry Hansmann 23 Contracts between Legal Persons 918 Lewis A. Kornhauser and W. Bentley MacLeod 24 Inter-Firm Contracts 958 Francine Lafontaine and Margaret E. Slade 25 Relational Incentive Contracts 1014 James M. Malcomson 26 Hybrid Modes of Organization 1066 Claude M?enard PART VI BEYOND FIRMS 27 Corruption 1109 Abhijit Banerjee, Rema Hanna, and Sendhil Mullainathan 28 Delegation, Control, and the Study of Public Bureaucracy 1148 Terry M. Moe Name Index 1183 Subject Index 1203
