Economic Theories of the Firm: Past, Present, and Future.

The authors explore the current state of the theory of the firm, with attention to its historical origins. Answers to the crucial theoretical question of why an organization c ontrolled by a central authority cannot always duplicate the performa nce of a decentralized organization are presented. Finally, the autho rs describe some important current directions in the theory of the fi rm and point out promising avenues for continuing research.