- Title Pages
- Dedication
- Preface
-
1 Modern Value Quandaries -
2 Theories of Value -
3 The Failure of the Neoclassical Investment Rule -
4 The Nature of the Firm -
5 The Organization and Scale of Private Business -
6 Accounting for the Firm -
7 VALUE IN CLASSICAL ECONOMICS -
8 VALUE IN NEOCLASSICAL ECONOMICS -
9 MODERN RECURSIVE EQUILIBRIUM AND THE BASIC PRICING EQUATION -
10 ARBITRAGE-FREE PRICING IN COMPLETE MARKETS -
11 Portfolio Pricing Methods -
12 Real Options and Expanded Net Present Value -
13 Traditional Valuation Methods -
14 PRACTICAL APPLICATION OF THE INCOME METHOD -
15 THE VALUE FUNCTIONAL: THEORY -
16 The Value Functional: Applications -
17 APPLICATIONS: FINANCE AND VALUATION -
18 Applications: Law and Economics -
Appendix A Key Formula and Notation Summary -
Appendix B Guide To The Solutions Manual -
Appendix C Description of Subject Companies - References
- Index
The Nature of the Firm
The Nature of the Firm
- Chapter:
- (p.44) (p.45) 4 The Nature of the Firm
- Source:
- The Economics of Business Valuation
- Author(s):
Patrick L. Anderson
- Publisher:
- Stanford University Press
This chapter presents three competing definitions of the firm, including a common definition of any organization that has a profit motive, a modern neoclassical definition of a transaction institution whose incentives differ from those of its owners, and a new three-part definition. The elements of the new definition of the firm include an organization with a profit motive for its investors, a separate identity, and replicable business practices.
Keywords: neoclassical Economics, agency theory, transactions theory, replicable business practices, three-element definition of the firm
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- Title Pages
- Dedication
- Preface
-
1 Modern Value Quandaries -
2 Theories of Value -
3 The Failure of the Neoclassical Investment Rule -
4 The Nature of the Firm -
5 The Organization and Scale of Private Business -
6 Accounting for the Firm -
7 VALUE IN CLASSICAL ECONOMICS -
8 VALUE IN NEOCLASSICAL ECONOMICS -
9 MODERN RECURSIVE EQUILIBRIUM AND THE BASIC PRICING EQUATION -
10 ARBITRAGE-FREE PRICING IN COMPLETE MARKETS -
11 Portfolio Pricing Methods -
12 Real Options and Expanded Net Present Value -
13 Traditional Valuation Methods -
14 PRACTICAL APPLICATION OF THE INCOME METHOD -
15 THE VALUE FUNCTIONAL: THEORY -
16 The Value Functional: Applications -
17 APPLICATIONS: FINANCE AND VALUATION -
18 Applications: Law and Economics -
Appendix A Key Formula and Notation Summary -
Appendix B Guide To The Solutions Manual -
Appendix C Description of Subject Companies - References
- Index
