Economics, Econometrics and Finance
4 years ago

Network Firms Redefined: A Single Real Entity with Legal Implications

Journal of Economic Issues
The Network Firm as a Single Real Entity: Beyond the Aggregate of Distinct Legal Entities
Virgile Chassagnon

Paper Summary

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The article explores whether a network firm is just a bunch of separate companies or a single entity. It argues that a network firm is actually one real entity made up of different legal entities. This has big implications for things like workers' rights and legal responsibilities. The researchers suggest that power relationships within the network firm play a key role in making it a unified entity.