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Under this view, the firm is seen famously as a nexus of contracts.
But it still arouses suspicion among those who think of the firm as a nexus of contracts, and who believe that people are motivated largely through extrinsic rewards.
Is the corporation a private contract among a group of investors that just creates a nexus of contracts to efficiently operate in the market?
Kay insists it is a legal fiction that companies can be seen purely in the economists' sense of a nexus of contracts to be used to make agreements, full of people who find it convenient to come together every day.
While the "nexus of contracts" paradigm conveys, at least rhetorically, the view that the relationships among those interacting within the corporation are fixed and enforceable, the reality may be that these relationships are more fluid and transitional, with outcomes determined less on the basis of legal rights than through coalition politics.
While standard economic theory today describes the corporation as a "series of bargains" or "nexus of contracts" in which additional interest groups--creditors, employees, suppliers, etc.-also participate, 2 it still assumes that these other actors will not seek to participate in governance decisions.
Similar(48)
Interpreting our findings as evidence for the nexus-of-contracts view of the firm, we discuss some implications for financial design and valuation.
Its predecessor Creative Industries found a large gap to be filled by showing how the distinctive properties of the arts and entertainment industries shape their industrial organization the evolving nexus of contract arrangements and market structures.
Focusing on the nexus of Jewish family law and contract law to propose how 'freedom of contract' can be part of how family law can be interpreted, The Jewish Family will appeal to practitioners, activists, academic researchers, and laymen readers who are interested in the fields of law, theology, and social science. 5. Towards establishing Halakhic parenthood by agreement -- Index Bibliography.
It's time for another look at the nexus of private military and security contracting and the exciting world of international law.
ACT will be utilizing the interactive voice response system Verboice, and working with a nexus of partners to improve the contract tracing process both locally and globally.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com