Exploring the Nature of Firms and Decision-making Processes

The chapter delves into a 1937 paper on firms, examining their existence in capitalist markets and their deviation from decentralized market transactions. It discusses the importance of understanding firm hierarchy, decision-making structures, and the influence of transaction costs on utilizing command and control. The conversation also critiques the dominance of game theory in business education and emphasizes the need for a deeper study of how firms operate, especially for future executives and managers.