This paper explores the relationship between the theory of the firm and the theory of financial markets. I begin with Mises’s claim that the defining feature of an industrialized, market economy is the use of financial markets to allocate capital among firms and among industries. This...

I discuss the rhetorical dimensions of bounded rationality in two different, yet related, contexts, namely in the practice of organizational economists and in Herbert Simon’s key attempts to persuade economists to take bounded rationality seriously, his Ely lecture and his Nobel Prize lecture....

The connection between entrepreneurship and economic organization is an under-researched topic in the economics of organization. This paper argues that key insights of the Austrian school of economics with respect to entrepreneurship and the nature and role of property rights and ownership may...

We analyze a key problem in organization theory and design, namely the potential tension between authority (i.e., the power to make decisions which guide the decisions of another person) and the discretion of employees (i.e., the ability of an agent to control resources including his own human...

We argue that the discovery process perspective, developed in the context of Austrian economics, is helpful for understanding the organization of large complex firms, even though the perspective has traditionally been applied to the analysis of market activities. The stress put in the...

Although organisational structure has sometimes been mentioned in evolutionary economics as well as in the innovation literature as a possible determinant of innovation performance, very little systematic theoretical and empirical work exist on this issue. In this paper, we take our theoretical...