The Political Theory of the Firm

Abstract

The political theory of the firm provides the conceptual framework for understanding what firms are doing and what it means for the polities in which they operate. This essay proceeds by explicating each of the three theories – unitary rational actor, nexus of contracts, and behavioral. Within each of these sections I offer a brief assessment of the empirical findings and opportunities associated with the theory at hand and of its limits. I conclude with a synthesis.