The Coordination Problems, the Market and the Firm

The aim of this paper is to contribute to a better understanding of the market and the firm through an analysis of the coordination problem. An important question is to what extent the nature and process of the coordination differs in the market from that within the firm. The paper deals only with those aspects of this issue which are related to a distinction between two types of coordination proposed by Klein (1997) and Sautet (2002). The author presents three dilemmas stemming from this framework and investigates the similarities and differences between the firm and the market by providing answers to these.