Michael C. Jensen

"This paper integrates elements from the theory of agency, the theory of property rights and the theory of finance to develop a theory of the ownership structure of the firm. We define the concept of a…"

"We define an agency relationship as a contract under which one or more persons ) engage another person to perform some service on their behalf which involves delegating some decision making authority …"

"It is traditional in the theory of the firm to define the production opportunity set available to the firm in terms of its boundary -- the maximum attainable set of output quantities for various input…"

"This paper analyzes the relations between knowledge, control and organizational structure both in the market system as a whole and in private organizations. Limitations on the mental capacity of the h…"

"A major social problem we face today is how to control the political process that is eroding the free enterprise market system. Although I am pessimistic that we will in fact ever resolve this problem…"

"The corporation as an organizational form is an enormously productive social invention. Partly because of its success it is under increasing attack from various quarters, often under the guise of “pro…"

"We define agency costs as the sum of:"

"Most organisations firms are simply legal fictions which serve as a nexus for a set of contracting relationships among individuals."