@article {9746, title = {Thinking about the Firm: A Review of Daniel Spulber{\textquoteright}s {\textquoteright}The Theory of the Firm{\textquoteright}}, journal = {Journal of Economic Literature}, volume = {49}, number = {1}, year = {2011}, pages = {101-113}, abstract = {In this review, I describe how economists have moved beyond the firm as a black box to incorporate incentives, internal organization, and firm boundaries. I then turn to the way that the theory of the firm is treated in Daniel Spulber{\textquoteright}s book The Theory of the Firm: Microeconomics with Endogenous Entrepreneurs, Firms, Markets, and Organizations. Spulber{\textquoteright}s goal is to explain why firms exist, how they are established, and what they contribute to the economy. To accomplish this, Spulber defines a firm to be a transaction institution whose objectives differ from those of its owners. For Spulber, this separation is the key difference between the firm and direct exchange between consumers. I raise questions about whether this is a useful basis for a theory of the firm. ( JEL D21)}, author = {Oliver Hart} }