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...

In the study of public bureaucracy, the relationship between political authorities and bureaucrats is commonly understood as one of principal and agent, and analysis centers on how the authorities can try to overcome the information asymmetry at the heart of this relationship--arising from the...