The Nature of the Firm
Silkscreen ink, oil on Canvas
32" x 36"
What is the essence of the firm? What is the difference between the firm and a market? What are the boundaries of the firm? Where does the market end? A Nobel Prize winning reply is that both firms and markets are alternative ways for allocating resources. Markets assign resources through the price mechanism. Firms allocate resource through command.
In The Nature of the Firm Firm, Market, and the Supply and Demand, lines are all the same color. The painting is suffused with avarice and accumulation. The market is outwith the firm. And it drops off the edge – all asking the questions: Where does the market begin? And where does it end?