The Market Process and The Firm: Toward a Dynamic Property Rights Perspective

We discuss the relations between alternative conceptualizations of the market process − neoclassical, Austrian and radical subjectivist/evolutionary − and alternative approaches to economic organization, for example, nexus of contract theory, Williamsonian transaction cost economics and the dynamic transaction cost approach of Langlois and Robertson. We argue that there is a distinct need for more firmly grounding theories of economic organization in theories of the market process, and that key ideas of the more dynamic conceptualizations of the market are likely to substantially enrichen the theory of economic organization.