Control and Inefficiency in Capitalist Production: The Role of Institutions

This paper offers a clarification of the terms and specific arguments associated with the radical claim that capitalist control of production leads to economic inefficiency. It argues that a greater understanding of the institutional features of the capitalist employment I relation is required in order to make the claim compelling. The paper finds suggestive evidence in support of the radical claim in an institutional analysis of postwar labor-management relations in the U.S.