Individualism , Collectivism , and Opportunism : A Cultural Perspective on Transaction Cost Economics

  title={Individualism , Collectivism , and Opportunism : A Cultural Perspective on Transaction Cost Economics},
  author={Chao C. Chen and Patrick A. Saparito},
Researchers criticize the transaction cost economics (TCE) paradigm for over-generalizing the assumption of opportunism as human nature. We suggest that opportunistic propensity is affected by cultural prior conditioning of individualism–collectivism (I–C). Specifically, we propose that individualists have a higher opportunistic propensity in intra-group transactions, and collectivists in inter-group transactions. Our cultural specification of opportunism helps TCE to more effectively… CONTINUE READING

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