Lecture 11 notes - Lecture 11 notes 2/11 Herman and Duboff...

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Lecture 11 notes 2/11 Herman and Duboff go with Perrow- similar critique of Chandler and Williamson On one hand, alternatives and critiques of TCE, but different from one another; Perrow: P/C corps are driven by quest to get control of the markets; NIT: orientation about people running firms, norms, what they think people want Different kind of critiques Third model: embeddedness= social network model/ network theory Prisoners dilemma What could companies do that might allow a way to avoid losing money: construct a cartel: set agreed price above break even point, everyone sticks to agreement, no price conflict, everyone makes money; In real life, system broke down-->prisoners dilemma, do you defect? What was necessary for them to maintain that price? What was necessary for there to be a commitment? T word: trust: what’s missing in the prisoner’s dilemma is that you cannot count on what the other players are going to do, you cannot trust them Granovetter’s theory of embeddedness
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Lecture 11 notes - Lecture 11 notes 2/11 Herman and Duboff...

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