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The separation between ownership and control has become common practice over the last century, in most medium and large firms across the world. Throughout the twentieth century, the theory of the firm and the theory of industrial organization developed parallel and complementary views on managerial firms. This book offers a comprehensive exposition of this debate.
In its survey of strategic delegation in oligopoly games, An Economic Theory of Managerial Firms is able to offer a reinterpretation of a range of standard resultsin the light of the fact that the control of firms is generally not in the hand of itsowners. The theoretical models are supported by a wealth of real-world examples,in order to provide a study of strategic delegation that is far more in-depth than haspreviously been found in the literature on industrial organization. In this volume,analysis is extended in several directions to cover applications concerning the roleof: managerial firms in mixed market; collusion and mergers; divisionalization andvertical relations; technical progress; product differentiation; international trade;environmental issues; and the intertemporal growth of firms.
This book is of great interest to those who study industrial economics, organizational studies and industrial studies.