Another line of interorganizational research had a micro focus and could be said to have some inspiration from literature dealing with increased division of labor in society. How can such sectors be understood? Most ratio-nales in such analysis are based on theories of public choice, which lead to the conception of a service industry (Ostrom and Ostrom 1977; Ostrom, Parks and Whitaker 1978) – which had many common features with a policy sector. The basic idea was to counter theories of (large) bureaucratic organization by theories of (small) organizational cooperation, making a case for small-scale government and governmental agencies which would pool resources for larger tasks, if necessary. The basic ideas were developed into game theoretical frameworks and applied in various forms of self-government (Ostrom 1990) and in intergovernmental relations in Germany (Scharpf 1997).