Compare and contrast of different theories of the firm proposed by Ronald Coase (1937) and by Armen Alchian and Harold Demsetz (1972)

Compare and contrast the different theories of the firm proposed by Ronald Coase (1937) and by Armen Alchian and Harold Demsetz (1972).

What are the main strengths and weaknesses of the two approaches?
• Word limit: 1,200 words
o 1. Ronald Coase (1937), Nature of the Firm
o 2. A. Alchian and H. Demsetz (1972), Information, Production Costs and
Economic Organization.
o (Both articles are available on moodle.)
• Grading:
o Grading is roughly based on the correct representation of the two positions
(33%), clarity of the analysis (33%) and overall readability (33%).

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