This book is an analysis of the modern economy's two major resource
allocation mechanisms. The price mechanism has been subject to
extensive examination by neoclassical economists, but there has
been relatively little attention paid to the impact of the
organization of firms on allocation. Professor Ichiishi presents a
distinctive theory of the firm which views firms as organizations
characterized by diversity of interest among their members, but an
acceptance of a coordinated choice of activities: a coalition
formed when people play a cooperative game. Using a theory
embodying both the neoclassical market mechanism, and the
cooperative game, the author derives a number of original results
thereby contributing to the theory of the firm, cooperative game
theory, and general equilibrium analysis theory.
General
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