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How do business enterprises control their subunits? In what ways do existing paths of communication within a firm affect its ability to absorb new technology and techniques? How do American banks affect how companies operate? Do theoretical constructs correspond to actual behavior? Because business enterprises are complex institutions, these questions can prove difficult to address. All too often, firms are treated as the atoms of economics, the irreducible unit of analysis. This accessible volume, suitable for course use, looks more closely at the American firm-into its internal workings and its genesis in the Gilded Age. Focusing on the crucial role of imperfect and asymmetric information in the operation of enterprises, Inside the Business Enterprise forges an innovative link between modern economic theory and recent business history.

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