NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Towards a Political Theory of the Firm

Luigi Zingales

NBER Working Paper No. 23593
Issued in July 2017
NBER Program(s):Corporate Finance

Neoclassical theory assumes that firms have no power of fiat any different from ordinary market contracting, thus a fortiori no power to influence the rules of the game. In the real world, firms have such power. I argue that the more firms have market power, the more they have both the ability and the need to gain political power. Thus, market concentration can easily lead to a “Medici vicious circle,” where money is used to get political power and political power is used to make money.

download in pdf format
   (174 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w23593

Published: Luigi Zingales, 2017. "Towards a Political Theory of the Firm," Journal of Economic Perspectives, vol 31(3), pages 113-130. citation courtesy of

Users who downloaded this paper also downloaded* these:
Autor, Dorn, Katz, Patterson, and Van Reenen w23396 The Fall of the Labor Share and the Rise of Superstar Firms
Zheng, Sun, Wu, and Kahn w21378 The Birth of Edge Cities in China: Measuring the Spillover Effects of Industrial Parks
Kaplan w23464 Are U.S. Companies Too Short-Term Oriented? Some Thoughts
Edmans, Gabaix, and Jenter w23596 Executive Compensation: A Survey of Theory and Evidence
Gutiérrez and Philippon w23583 Declining Competition and Investment in the U.S.
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us