R. H. Coase - The Firm, the Market, and the Law.pdf

1、THEFIRMR.H.CoaseTheFirmtheMarketandtheLawTheFirmtheMarketandtheLawR.H.Coasew)TheUniversityofChicagoPressChicagoandLondonThelfniversit)olChicagoPress.Chicago60637IIk-IniversitjofChicagoPress,Ltd.,London1988byTheUniversit)ofChicagoAllrightsreserved.Published1988Paperbackedition1990PrimedintheUnitedSta

2、tesofAmerica1312II10090807060504910II1213LibraryofCongressCataloging-in-PublicationDataCoase,R.H.(RonaldHarry)Thefirm,themarket,andthelaw/R.H.Coase.Includesindex.ISBN0-226-11101-6(paper)I.Industrialorganization(Economictheory)2.Externalities(Economics)3.Capitalism.I.Title.HD2326.C61988338.5142dcl987

3、-24193ThepaperusedinthispublicationmeetstheminimumrequirementsoftheAmericanNationalStandardforInformationSciencesPermanenceofPaperforPrintedLibraryMaterials.ANSIZ39.48-1992.ContentsPrefaceviiONETheFirm,theMarket,andtheLaw1TWOTheNatureoftheFirm33THREEIndustrialOrganization:AProposalforResearch57FOURT

4、heMarginalCostControversy75FIVETheProblemofSocialCost95SIXNotesontheProblemofSocialCost157SEVENTheLighthouseinEconomics187Index215DigitizedbytheInternetArchivein2011http:/www.archive.org/details/firmmarketlawOOcoasPrefaceThepurposeofthisbookistopersuademyfelloweconomiststochangethewaytheyanalyzeanum

5、berofimportantques-tionsinmicro-economics.Mostofthebookconsistsofreprintsofpreviouslypublishedarticles,butIhaveattemptedinanintroductoryessayandinapaperentitledNotesontheProb-lemofSocialCosttomakeclearerthecharacterofthear-gumentinthesearticlesandtorespondtosomeofthemaincriticismswhichhavebeenmadeof

6、them.Nochangeshavebeenmadeinthearticlesreprintedexcepttocorrectmisprintsandtoremovesomeeccentricitiesinmyspellingandgrammar.IhavetothankGaryBecker,GerhardCasper,AaronDirector,andGeorgeStigler,allofwhomreadmyintroductoryessayandNotesontheProblemofSocialCostandmadesuggestionswhichhaveresultedinmanyimp

7、rovements,al-thoughnotasmanyastheywouldhavewished.ONETheFirm,theMarket,andtheLawI.TheAimoftheBookThecoreofthisbookconsistsofthreepapers,TheNatureoftheFirm(1937),TheMarginalCostControversy(1946),andTheProblemofSocialCost(1960).Otherpaperswhichextend,illustrate,orexplaintheargumentsinthesethreepa-pers

8、arealsoincluded.Aswillbecomeapparent,theseessaysallembodyessentiallythesamepointofview.Mypointofviewhasnotingeneralcommandedassent,norhasmyargument,forthemostpart,beenunderstood.Nodoubtinadequaciesinmyexpositionhavebeenpartlyrespon-sibleforthisandIamhopefulthatthisintroductoryessay,whichdealswithsom

9、eofthemainpointsraisedbycommen-tatorsandrestatesmyargument,willhelptomakemypositionmoreunderstandable.ButIdonotbelievethatafailureofexpositionisthemainreasonwhyeconomistshavefoundmyargumentsodifficulttoassimilate.Astheargumentinthesepapersis,Ibelieve,simple,sosimpleindeedasalmosttomaketheirpropositi

10、onsfallintothecategoryoftruthswhichcanbedeemedself-evident,theirrejectionorapparentincomprehen-sibilitywouldseemtoimplythatmosteconomistshaveadif-ferentwayoflookingateconomicproblemsanddonotsharemyconceptionofthenatureofoursubject.ThisIbelievetobetrue.Atthepresenttimethedominantviewofthenatureofecon

11、omicsisthatexpressedinRobbinsdefinition:Econom-icsisthesciencewhichstudieshumanbehaviourasarela-tionshipbetweenendsandscarcemeanswhichhavealternativeTheFirm,theMarket,andtheLawuses.1Thismakeseconomicsthescienceofhumanchoice.Inpractice,mosteconomists,includingRobbins.restricttheirworktoamuchnarrowers

12、etofchoicesthanthisdefinitionwouldsuggest.Recently,however,BeckerhasarguedthatRobbinswayoflookingateconomicsneednotbesocon-strainedandthattheeconomicapproach,ashetermsit,canandshould beappliedmoregenerallythroughoutthesocialsciences.Thattheeconomicapproachcanbeappliedsuc-cessfullyintheothersocialsci

13、encesisdemonstratedbyBeck-ersownwork.2Itsverysuccess,however,posesthequestion.Whyhavetheeconomiststoolsoftradeprovedtobesoversatile?Myparticularinteresthasbeeninthatpartofeconomictheorywhichdealswithfirms,industries,andmarkets,whichusedtobecalledValueandDistributionandisnowusuallytermedpricetheoryor

14、micro-economics.Itisanintricatestruc-tureofhighintellectualqualityandhasproducedvaluablein-sights.Economistsstudyhowthechoiceofconsumers,inde-cidingwhichgoodsandservicestopurchase,isdeterminedbytheirincomesandthe pricesatwhichgoodsandservicescanbebought.Theyalsostudyhowproducersdecidewhatfactorsofpr

15、oductiontouseandwhatproductsandservicestomakeandsellandinwhatquantities,giventhepricesofthefactors,thedemandforthefinalproduct,andtherelationbetweenoutputandtheamountsoffactorsemployed.Theanalysisisheldtogetherbytheassumptionthatconsumersmaximizeutil-ity(anonexistententitywhichplaysapartsimilar.Isus

16、pect,tothatofetherintheoldphysics)andbytheassumptionthatproducershaveastheiraimtomaximizeprofitornetincome(forwhichthereisagooddealmoreevidence).Thedecisionsofconsumersandproducersarebroughtintoharmonybythetheoryofexchange.Theelaborationoftheanalysisshouldnothidefromusitsessentialcharacter:itisanana

17、lysisofchoice.Itisthiswhichgivesthetheoryitsversatility.Beckerpointsoutthatwhat1.LionelRobbins.AnEssayontheNatureandSignificanceofEconomicScience,2nded.(London:Macmillun&Co.,1935),16.2.SeethevariousstudiesinGaryS.Becker,TheEconomicApproachtoHumanBehaviorChicago:Universit)ofChicagoPress.1976)TheFirm,

18、theMarket,andtheLawmostdistinguisheseconomicsasadisciplinefromotherdis-ciplinesinthesocialsciencesisnotitssubjectmatterbutitsapproach.3Ifthetheorieswhichhavebeendevelopedineco-nomics(oratanyrateinmicro-economics)constituteforthemostpartawayofanalyzingthedeterminantsofchoice(andIthinkthisistrue),itis

19、easytoseethattheyshouldbeap-plicabletootherhumanchoicessuchasthosethataremadeinlaworpolitics.Inthissenseeconomistshavenosubjectmatter.Whathasbeendevelopedisanapproachdivorced(orwhichcanbedivorced)fromsubjectmatter.Indeed,sincemanisnottheonlyanimalthatchooses,itistobeexpectedthatthesameapproachcanbea

20、ppliedtotherat,cat,andoctopus,allofwhomarenodoubtengagedinmaximizingtheirutilitiesinmuchthesamewayasdoesman.Itisthereforenoaccidentthatpricetheoryhasbeenshowntobeapplicabletoanimalbehaviour.4Thispreoccupationofeconomistswiththelogicofchoice,whileitmayultimatelyrejuvenatethestudyoflaw,politicalscienc

21、e,andsociology,hasnonethelesshad,inmyview,se-riousadverseeffectsoneconomicsitself.Oneresultofthisdivorceofthetheoryfromitssubjectmatterhasbeenthattheentitieswhosedecisionseconomistsareengagedinanalyzinghavenotbeenmadethesubjectofstudyandinconsequencelackanysubstance.Theconsumerisnotahumanbeingbutaco

22、nsistentsetofpreferences.Thefirmtoaneconomist,asSlaterhassaid,kkiseffectivelydefinedasacostcurveandademandcurve,andthetheoryissimplythelogicofoptimalpricingandinputcombination.5Exchangetakes placewithoutanyspecificationofitsinstitutionalsetting.Wehaveconsumerswithouthumanity,firmswithoutorganization

23、,andevenex-changewithoutmarkets.TherationalutilitymaximizerofeconomictheorybearsnoresemblancetothemanontheClaphambusor,indeed,to3.Ibid.,5.4.See,forexample,JohnH.Kagel.RaymondC.Battalio.HowardRachlin.andLeonardGreen,DemandCurvesforAnimalConsumers/1Quar-terlyJournalofEconomics96,no.1(Februaryis,xi):1-

24、14.5MartinSlater,ForewordtoEdithT.Penrose./;TheoryojtheGrowthojtheFirm,2nded.(WhitePlains,N.Y.:M.E.Sharpe,1980).ix.TheFirm,theMarket,andtheLawanyman(orwoman)on anybus.Thereisnoreasontosupposethatmosthumanbeingsareengagedinmaximizinganythingunlessitbeunhappiness,andeventhiswithincompletesuc-cess.Knig

25、hthasexpressedthethoughtverywell:il.theargumentofeconomists.thatmenworkandthinktogetthemselvesoutoftroubleisatleasthalfaninversionofthefacts.Thethingsweworkforareannoyersasoftenassatis-fies/wespendasmuchingenuityingettingintotroubleasingettingout,andinanycaseenoughtokeepineffectively.Amanwhohasnothi

26、ngtoworryaboutimmediatelybusieshimselfincreatingsomething,getsintosomeabsorbinggame,fallsinlove,preparestoconquersomeenemy,orhuntlionsortheNorthPoleorwhatnot.6Ibelievethathumanpreferencescametobewhattheyareinthosemillionsofyearsinwhichourancestors(whetherornottheycanbeclassifiedashuman)livedinhuntin

27、gbandsandwerethosepreferenceswhich,insuchconditions,werecon-ducivetosurvival.Itmaybe,therefore,thatultimatelytheworkofsociobiologists(andtheircritics)willenableustoconstructapictureofhumannatureinsuchdetailthatwecanderivethesetofpreferenceswithwhicheconomistsstart.Andifthisresultisachieved,itwillena

28、bleustorefineouranalysisofconsumerdemandandofother kindsofbehaviourintheeconomicsphere.Inthemeantime,however,whatevermakesmenchooseastheydo,wemustbecontentwiththeknowledgethatforgroupsofhumanbeings,inalmostallcircumstances,ahigher(relative)priceforanythingwillleadtoareductionintheamountdemanded.This

29、doesnotonlyrefertoamoneypricebuttopriceinitswidestsense.Whethermenarerationalornotindecidingtowalkacrossadangerousthoroughfaretoreachacertainrestaurant,wecanbesurethatfewerwilldosothemoredangerousitbecomes.Andweneednotdoubtthattheavailabilityofalessdangerousalternative,say,ape-destrianbridge,willnor

30、mallyreducethenumberofthosecrossingthethoroughfare,northat,aswhatisgainedbycross-ingbecomesmoreattractive,thenumberofpeoplecrossing6.FrankH.Knight,TheEthicsofCompetition,2nded.(NewYork:Harper&Bros.1936).32.TheFirm,theMarket,andtheLawwillincrease.Thegeneralizationofsuchknowledgeconstitutespricetheory

31、.Itdoesnotseemtometorequireustoassumethatmenarerationalutilitymaximizers.Ontheotherhand,itdoesnottelluswhypeoplechooseastheydo.Whyamanwilltakeariskofbeingkilledinordertoobtainasandwichishiddenfromuseventhoughweknowthat,iftheriskisin-creasedsufficiently,hewillforegoseekingthatpleasure.Noneoftheessays

32、inthisbookdealswiththecharacterofhumanpreferences,nor,asIhavesaid,doIbelievethateconomistswillbeabletomakemuchheadwayuntilagreatdealmoreworkhasbeendonebysociobiologistsandothernoneconomists.Buttheacceptancebyeconomistsofaviewofhumannaturesolackingincontentisofapiecewiththeirtreatmentofinstitutionswh

33、icharecentraltotheirwork.Theseinstitutionsarethefirmandthemarketwhichtogethermakeuptheinstitutionalstructureoftheeconomicsystem.Inmain-streameconomictheory,thefirmandthemarketare,forthemostpart,assumedtoexistandarenotthemselvesthesubjectofinvestigation.Oneresulthasbeenthatthecrucialroleofthelawindeterminingtheactivitiescarriedoutbythefirmandinthemarkethasbeenlargelyignored.Whatdifferentiatestheess