In this groundbreaking title from the mid-1990s, Tyler Cowen and David Parker explore the extent to which firms can benefit from using market principles to allocate resources within their organisations.
They suggest that just as central economic planning is ineffective, so planning at the level of the individual firm is inadequate in responding to market place requirements. The danger, of course, in less formally structured organisations is that of anarchy in decision making, but Cowen and Parker suggest ways in which this can be avoided, and provide examples of how this decentralisation has worked in practice.
The main conclusion of this book is that market principles are appropriate guides in business decisions as well as providing the best structure for economy-wide resource allocation.
2007, 1997, Hobart Paper 134, ISBN 978 0 255 36405 8, 92pp, PB