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Shirking and Sharking: A Legal Theory of the Firm

By Eric W Orts


This Article reexamines economic theories of the firm from a legal perspective. These theories are said to have \u22dominated\u22 and produced a \u22revolution\u22 in legal scholarship in recent years, particularly in the field of enterprise organization. In this Article, I accept the insights of this scholarship, but recommend a significant expansion of its theoretical premises. In contrast to most economic accounts, I argue that legal theory is needed for an accurate description of the business firm. In particular, I contest economic theories of the firm that fail to appreciate the importance of legal relationships of agency authority, power, and hierarchy

Topics: Law
Publisher: Yale Law School Legal Scholarship Repository
Year: 2015
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