@techreport{NBERw13481,
 title = "Reference Points and the Theory of the Firm",
 author = "Oliver D. Hart",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "13481",
 year = "2007",
 month = "October",
 URL = "http://www.nber.org/papers/w13481",
 abstract = {In this article I argue that it has been hard to make progress on Coase's theory of the firm agenda because of the difficulty of formalizing haggling costs.  I propose an approach that tries to move things forward using the idea of aggrievement costs, and apply it to the question of whether a transaction should be placed inside a firm (in-house production) or in the market place (outsourcing).},
}