Information and Organization: A New Perspective on the Theory of the Firm

Information and Organization offers a vision of the economy as a system of structured information flow, counterbalancing the more conventional view of a simple flow of material goods. The structuring is effected by institutions and, in particular, by firms, which specialize in processing the information needed to allocate resources. In place of the orthodox emphasis on the adversarial use of asymmetric information, the book stresses the use of information for creative purposes--for decision-making and coordinating the use of resources.