Problem
Rock bands emerged in the late 1950s and early 1960s in coastal areas of the UK (Liverpool, for example) as very informal partnerships of young males. Originally bands performed in dance venues, did not produce their own songs and did not make much money. That changed with the meteoric rise of The Beatles, a band built on original songs written by the band's members. The example of The Beatles was soon followed by other bands who also integrated writer and performer functions. This created income disparities between band members according to their writing royalties.
Most rock bands were organized as partnerships. However, some were organized as hierarchies, with one band member acting as entrepreneur and the other members receiving pay as workers. What do you think are the advantages and disadvantages of partnerships versus hierarchies in the case of rock bands?
Economic approaches to organization, Chapter 9, Transaction cost economics.