Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Inside and outside the black box: organization of interdependencies
Jönköping University, Jönköping International Business School, JIBS, Economics.
Jönköping University, Jönköping International Business School, JIBS, Economics. Royal Institute of Technology, Stockholm, Sweden.ORCID iD: 0000-0002-0184-5350
2018 (English)In: The annals of regional science, ISSN 0570-1864, E-ISSN 1432-0592, Vol. 61, no 3, p. 501-516Article in journal (Refereed) Published
Abstract [en]

Production theory has remained substantially unchanged since the publication of the theory of production by Frisch (Theory of production, D. Reidel, Dordrecht, 1928; Nord613 Tidskr Tek Økon 1:12–27, 1935). The theory is based on the idea of a firm deciding on the possible input and output combinations of a single unit of production. His theory was substantially copied in contributions by Carlson (A study on the pure theory of production, University of Chicago, Chicago, 1939) and Schneider (Einführung in die Wirtschaftstheorie. 4 Bände, Mohr, Tübingen, 1947), and later by practically all textbooks in microeconomics. The idea is to model the firm as a “black box” in which a finite number of externally purchased inputs are transformed into a finite number of outputs to be sold in the market(s). Most of the time, the prices are externally determined. Often, the production process is summarized by some simplified production function as, for example, in the form of a CES function. Another and conceptually richer approach is the formulation of an activity analysis model. In the latter case, simple internal interdependencies can be included. In this paper, we indicate how internal interdependencies can also be modeled within a special CES framework. In recent decades, there has been a remarkable growth in the number of production units of firms such as IKEA, Walmart and Apple to name a few such global networking firms. Most of the analysis of these network firms has been modeled by logistics and other operations-research analysts (Simchi-Levi et al. 2008) and to a limited extent by researchers in business administration schools. Very little has been done in economics. We propose a modeling approach consistent with the microeconomic theory. 

Place, publisher, year, edition, pages
Springer, 2018. Vol. 61, no 3, p. 501-516
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-42292DOI: 10.1007/s00168-018-0886-1ISI: 000452762400005Scopus ID: 2-s2.0-85057327952OAI: oai:DiVA.org:hj-42292DiVA, id: diva2:1270352
Available from: 2018-12-13 Created: 2018-12-13 Last updated: 2019-01-02Bibliographically approved

Open Access in DiVA

No full text in DiVA

Other links

Publisher's full textScopus

Authority records BETA

Andersson, Åke E.Johansson, Börje

Search in DiVA

By author/editor
Andersson, Åke E.Johansson, Börje
By organisation
JIBS, Economics
In the same journal
The annals of regional science
Economics

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 47 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf