32 Why Do Firms Exist?
3.2 Two Puzzles Regarding the Scope of a Firm
3.2.2 Explanations for the Existence of Firms
3.2.3 Alternative Economic Organizations
3.2.4 Spot Markets
3.2,5 Specific Investments and Quasi-Rents
3.2.6 Contracts
3.2,7 Complete vs. Incomplete Contracts
3.2.8 Vertical Integration
33 Limits to Fim Size
3.3 The Paradox of Selective intervention
3.3.2 Property Rights Approach to the Theory of the Firm
3.4 Do Firms Profit Maximize?
34.1 Shareholder Monitoring and incentive Contracts
3.4.2 External Limits to Managerial Discretion 35 Chapter Summary
3.6 Suggestions for Further Reading