transaction cost economics
E455285
Transaction cost economics is a branch of institutional economics that explains how and why firms and markets are structured by focusing on the costs of making economic exchanges, such as negotiating, monitoring, and enforcing contracts.
All labels observed (1)
| Label | Occurrences |
|---|---|
| transaction cost economics canonical | 1 |
Statements (52)
| Predicate | Object |
|---|---|
| instanceOf |
branch of institutional economics
ⓘ
branch of microeconomics ⓘ economic theory ⓘ theory of the firm ⓘ |
| addresses |
enforcement costs
ⓘ
maladaptation costs in contracts ⓘ monitoring costs ⓘ negotiation costs ⓘ |
| analyzes |
alliances and joint ventures
ⓘ
firms ⓘ franchising ⓘ long-term contracts ⓘ markets ⓘ vertical integration ⓘ |
| appliedIn |
corporate governance
ⓘ
industrial organization ⓘ law and economics ⓘ public policy analysis ⓘ regulation and deregulation studies ⓘ strategic management ⓘ |
| associatedWith |
New Institutional Economics
NERFINISHED
ⓘ
contract theory ⓘ organizational economics ⓘ |
| assumes |
incomplete contracts
ⓘ
information asymmetries ⓘ |
| coreConcept |
asset specificity
ⓘ
bounded rationality ⓘ frequency of transactions ⓘ governance choice ⓘ hierarchy vs market ⓘ hybrid governance structures ⓘ opportunism ⓘ uncertainty ⓘ |
| developedBy | Oliver E. Williamson NERFINISHED ⓘ |
| explains |
choice between market and hierarchy
ⓘ
contractual design ⓘ organizational boundaries ⓘ why firms exist ⓘ why some activities are coordinated through markets ⓘ why some activities are internalized within firms ⓘ |
| focusesOn |
boundaries of the firm
ⓘ
contracting problems ⓘ costs of economic exchange ⓘ governance structures ⓘ make-or-buy decisions ⓘ organizational form ⓘ transaction costs ⓘ |
| influencedBy |
Coase theorem
NERFINISHED
ⓘ
Ronald Coase NERFINISHED ⓘ “The Nature of the Firm” NERFINISHED ⓘ |
| keyWork |
“Markets and Hierarchies”
NERFINISHED
ⓘ
“The Economic Institutions of Capitalism” NERFINISHED ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.