26. Hybrid Modes of Organization

Abstract

The central message conveyed in this chapter is that there is a whole class of economic organizations that contribute substantially to what Coase (1992) called the institutional structure of production. These arrangements fall neither under pure market relationships nor within 'firm boundaries'. They have multiplied because they are viewed as efficient in dealing with knowledge-based activities, solving hold-up problems, and reducing contractual hazards. They have properties of their own that deserve theoretical attention and empirical investigation.

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