Rosanna Nisticò

Incomplete Contracts and Make-or-Buy Theories: Established Models and Some Recent Contributions

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The theory of the firm is a relatively recent discipline, which stimulated a growing interest among economists. After thirty years of research efforts, we now have several contributions explaining different aspects of the nature and existence of the firm. The search for a unified theory, however, still remains a theoretical challenge. In this survey we examine the theories concerning the make-or-buy problem, focusing on recent contributions that tried to develop a unifying framework. This survey emphasizes the role of incomplete contracts as a common and relevant trait of the theories discussed.

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