Since the 1990s, Japanese firms have sought to expand their capacity for innovation by incorporating Western management practices into their organizational culture. This combination of Japanese and Western management practices has been highly successful — Japanese firms are presently at...

We argue that since Coase’s seminal 1937 paper on “The Nature of the Firm,” there has been an odd and unjustified separation between price theory and the economics of organization. For example, matters of production has been the domain of the former exclusively. However, a new approach to...