... Group and Harvard Business Schoole-mail: MJensen@hbs.eduAbstractThis paper examines the role of the corporate objective function in corporate productivity and efficiency, social welfare, and ... `Why Pay People to Lie?').Jensen, M. C. and Meckling, W. H., `Specific and general knowledge, and organisationstructure), in L. Werin and H. Wijkander (eds), Contract Economics. (Oxford: BasilBlackwell, ... where consumer and producer surpluses are zero, and there are no externalities or monopoly.The Corporate Objective Function 303#Michael C. Jensenexpand purchases of inputs and sell the resulting...