The Generative Nature of the Firm

da Rocha Braga, Bruno (2022): The Generative Nature of the Firm.

Abstract

This paper discusses a meta-theoretical framework that aims to explain all forms of economic coordination using a computational complexity approach. Using a formal model inspired by Generative Grammar Theory, it establishes a demarca-tion criterion between markets and hierarchies (including hybrid forms). The hy-pothesized equivalence between economic coordination structures and linguistic structures makes it possible to explore any sequence of decision-making event outcomes, whether individual actions or social interactions, for patterns of causal relations in a way analogous to sentences in a language. This research concludes that patterns of decision-making events are categories of processes, and that eco-nomic coordination in organizational structures achieve a complexity level that is not possible in free market structures.

• Item Type: MPRA Paper
• Language: English
• Keywords: Critical Realism; Generative Grammar Theory; Social Ontology; Pragmatism; Theory of the Firm
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C63 - Computational Techniques ; Simulation Modeling; D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L21 - Business Objectives of the Firm

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