Foundations of management and organizations - Markets and organizations

4 important questions on Foundations of management and organizations - Markets and organizations

What happened if there's optimal allocation of stock (in stockmarket)

if buyers who were most interested are satisfied, and seller who were least interested have sold.

Coase Original Distinction

Markets and organizations are two ideal types of coordination for exchange transactions

 

3 problems associated with price system/markets

1. cost (if only time) finding out what relevant prices are

2. costs to make a basis for market transaction (labour)

3. conditions that make hardly possible or costly to make contract

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Coordinating mechanism for organizations

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