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On Custom in the Economy$
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Ekkehart Schlicht

Print publication date: 1998

Print ISBN-13: 9780198292241

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198292244.001.0001

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The Firm

The Firm

(p.207) Chapter 13 The Firm
On Custom in the Economy

Ekkehart Schlicht

Oxford University Press

Starts with some general comments on the fuzziness of theoretical concepts that point to real phenomena and defends the view that the firm may be understood as a social entity, rather than a nexus of contracts among individuals. The firm uses several mechanisms of control at once: authority, rewards, and duty. These mechanisms relate to each other and support each other. The productivity of the firm is brought about by this type of tight alignment that builds on the same cognitive, behavioural, and emotional tendencies that shape custom.

Keywords:   authority, control mechanisms, custom, duty, firm, fuzziness, productivity, rewards

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