Information Economics and Industrial Organization

Issue title: Information Economics and Design of Organizations

Article type: Research Article

Authors: Antonelli, Cristiano

Affiliations: Laboratorio di Economia dell'Innovazione, Dipartimento di Economia, Università di Torino, Via S. Ottavio 20, 10124 Torino, Italy

Abstract: Interest in merging industrial organization and information economics appears to center primarily on the wide range of intermediate institutional solutions which are to be found between the two extremes of Markets and Hierarchies. Network firms emerge when both costs of using Hierarchies and costs of using Markets are very high and benefits of economies of scale are low. Network firms cluster around complementary and interdependent productive relations that involve the shared use of interrelated factors and have a highly specific and idiosyncratic character.

Keywords: Markets, hierarchies, networks, technological change, interrelatedness

DOI: 10.3233/HSM-1992-11203

Journal: Human Systems Management, vol. 11, no. 2, pp. 53-60, 1992