Time: April 12th, 2013 Topic: What is a Firm? And Why We Should Not Ignore the Question Lecturer: Geoff Hodgson Commentators: Chen Ping, Deng Feng, Liu Xiaoxuan, Zhong Jiyin, Liu Yejin, Sheng Hong Prof. Hodgson summed up the definitions of firm in the economics profession and criticized these explanations. Furthermore, he stated that cooperate power should be given by law and that there exists no market within enterprises. He emphasized the significance of the boundary of enterprise. Moreover, Prof. Hodgson mentioned that it is highly important for China nowadays to promote independence of the judiciary and fight against corruption. Mr. Liu Xiaoxuan stated that property right s must be protected by law and during the reform of state-owned enterprises, firms should have a legal orientation . But he did not agree that the nature of firm was an independent legal entity. The condition that the government decide s the boundary of firms should be changed; cut off contact to interest groups ; and relationships between legal entities should be re defined. Mr. Deng Feng agreed Prof. Hodgson 's standpoint that firm s should be recognized as responsible unit s , but in his view, Prof. Hodgson had overestimated the power of law, and he did not think that the nature of firm was an independent legal entity. Mr. Chen Ping analyzed Prof. Hodgson's theory and gave suggest ions for further improvenment . According to him, Prof. Hodgson expanded the view of modern economics and succeeded by expand ing his analysis from specific questions to more basic questions. Prof. Zhong Jiyin agreed with the view of recognizing firms as legal entities , stated that in China the awareness of independent legal entity was very weak and supported the standpoint that firms should be viewed as a set of contracts, and that it was very critical to combine them. Prof. Liu Yejin mentioned that Prof. Hodgson just changed the black box's position , but did not succeed in solv ing questions . T he solution to open the black box is to make economic systems function orderly and he regarded the core of enterprises is computing―cooperation unite. Finally, Prof. Sheng Hong stated that it was advantageous to explain firm in law, that Hodgson's theory should be understood considering the Anglo-American law system background , and that the core of enterprises was to assume limited responsibility. |