This dissertation attempts to construct a theory which states that forms of enterprise are determined to a large extent by potential market failure. In the four independent, but closely interrelated chapters, I derive this hypothesis through theoretical reasoning, and suppose it by referring to empirical observations. Chapter 1, Forms of enterprise as a response to market failure, proposes the main idea that forms of enterprise are determined by market failure. I take three representative types of firms- capitalist firms, worker owned firms, and consumer cooperatives- and consider their relationship with three major causes for failure of markets: asymmetric information, externalities, and market power. Chapter 2, Firms owned by raw material suppliers: A case of food manufacturing firms run by agriculture cooperatives in Japan, is a case study which complements chapter 1. It deals with food processing farmers ’ cooperatives. These firms are owned by the suppliers of raw materials, and therefore classified as the fourth type of firms. I consider comparative efficiency of this type of firms from the viewpoint of market power and asymmetric information. Chapter 3, Asymmetric information on production-related risks and the form of enterprise: Capitalist firms versus consumer cooperatives, considers an efficient enterprise form when there is asymmetric information on accident risks in the market. Chapter 4, Market power and the form of enterprise: Capitalist firms, worker owned firms, or consumer cooperatives, considers an efficient enterprise form when there is market power in various markets. Acknowledgements I would like to express my deep gratitude to Dr. Hans H. Haller, my advisor, and Dr. Robert P. Gilles, a member of my committee and my first advisor, for their instructions and encouragement. I would also like to thank the other members of my committee, Dr. Amoz Kats, Dr. Nancy A. Lut
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