The Firm as Transaction Cost Economics Concept

Tchipev, Plamen D (2016): The Firm as Transaction Cost Economics Concept.

Abstract

This is a draft English translation of the paper The Firm as Transaction Cost Economics Concept/ Фирмата в Теорията на транзакционните разходи which has been published in the “National Scientific Conference on Political Economy. Proceedings Volume”, Ruse: Publishing Centre of the Ruse University, 2016 Abstract: Within the framework of the mainstream neoclassical model, the existence of the firm creates serious theoretical difficulties. Major attempt to overcome them, leads to application of the Transaction cost economics developed by Coase, Williamson, etc. On its own turn, it creates new contradictions, part of which are treated by the present paper from the point of evolutionary political economy.

• Item Type: MPRA Paper
• Language: English
• Keywords: Keywords: Economic theory, Transaction cost economics, Theory of the Firm, Coase, Williamson.
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B2 - History of Economic Thought since 1925 > B25 - Historical ; Institutional ; Evolutionary ; Austrian; B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B52 - Institutional ; Evolutionary; D - Microeconomics > D2 - Production and Organizations > D23 - Organizational Behavior ; Transaction Costs ; Property Rights

References

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Jensen, M.C. and W.H. Meckling, 1976, Theory of the firm: managerial behavior, agency costs, and ownership structure, Journal of Financial Economics, 3, 305–360.

Levine, P., 2006. Economic Theory, Vol. 1, Oxford: Taylor & Francis, pp 360.

Williamson, O. E. (1975). Markets and hierarchies. New York, 26-30.

Williamson, O. E. (1979). Transaction-cost economics: the governance of contractual relations. The journal of law & economics, 22(2), 233-261.

Weintraub, E. Roy (1993) Neoclassical Economics: The Concise Encyclopedia of Economics | Library of Economics and Liberty. Retrieved January 9, 2016, from http://www.econlib.org/library/Enc1/NeoclassicalEconomics.html.