1. Market power and the form of enterprise -- 2. Asymmetric information and the form of enterprise -- 3. Externalities and the form of enterprise -- 4. The predominance of capitalist firms in the market economy -- 5. An alternative system of business organization in the market economy.

It has been argued in the literature that limiting the profits of hospitals can be an effective method of maintaining the quality of medical care. The present paper examines this hypothesis using a simple formal model of the health-care market under asymmetric information. It is shown that, in...

This paper examines the implication of different enterprise forms -- capitalist firm and consumer cooperative -- for the level of accident risks, assuming informational asymmetry between the firm and the outside trader. Our conclusion is that, in order to reduce accident risks, we should choose...