KNIGHT'S “MORAL HAZARD” THEORY OF ORGANIZATION
- 1 January 1987
- journal article
- Published by Wiley in Economic Inquiry
- Vol. 25 (1) , 117-120
- https://doi.org/10.1111/j.1465-7295.1987.tb00726.x
Abstract
In this paper I suggest that besides Knight's well recognized “uncertainty” explanation of the firm, he had another one. “Moral hazard” is the central feature in the second, largely overlooked theory. I argue, and attempt to document, that this theory is not a chance excursion but is rather quite well developed by Knight.Keywords
This publication has 3 references indexed in Scilit:
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- Theory of the firm: Managerial behavior, agency costs and ownership structureJournal of Financial Economics, 1976
- The Costs of Alternative Economic OrganizationsCanadian Journal of Economics/Revue canadienne d'économique, 1975