Notes on partnerships in the services sector

Abstract

Although in most developed countries the service sector is almost as large as the industry sector, little attention has been paid to its industrial organization. These notes are concerned with only one problem: why partnership, as a form of economic organization, is more popular in some industries within the services sector, while it occurs less frequently in other. Without refuting other possible explanations, we shall argue that partnerships are more frequent in consulting service industries than in other service industries and this form of organization comes to save consumers' time as well as other consulting fees in exactly the same way as the clustering phenomena emerge in the industry sector to save consumers' search time.