Wednesday, July 17, 2013

What Does The Market Based Experiment At Sears Imply For The Theory Of The Firm?

Paul Krugman wonders what Eddie Lampert's reorganization at Sears and argues that it runs counter to the prevalent organization large corporation.  They are primarily command and control systems in which functional divisions provide most of needs of the corporation.  If markets are the best way to organize firms our major corporations violate the concept of market rule.

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