Metaphors of Transaction Cost Economics

  title={Metaphors of Transaction Cost Economics},
  author={Huascar Fialho Pessali},
  journal={Review of Social Economy},
  pages={313 - 328}
  • H. Pessali
  • Published 1 September 2009
  • Economics
  • Review of Social Economy
Abstract Metaphors are part of our daily lives as they help us understand the world. Economics, as with other areas of knowledge, cannot go without metaphors. Transaction Cost Economics (TCE)—a prominent theoretical framework on economic organisation—is no different: it has been built on a set of metaphors. This article gathers and discusses three of the key metaphors of TCE—transaction costs as frictions, human beings as “contractual men,” and economic selection between mechanisms of… 

From transaction costs to transaction value: Overcoming the frictional paradigm

The transaction cost economics has accumulated a mass of dogmatic concepts and assertions that have acquired high stability under the influence of path dependence. These include the dogma about

Two sides of the same coin: matter and embodiment in metaphors of money

Purpose – The purpose of this paper is to document the conceptual metaphors (Lakoff and Johnson, 2003) found in the talk of Greek and Australian adults to describe how people think about money. As

Metaphor, Metonymy and Framing in Discourse

Metaphor involves the perception of similarities or correspondences between unlike entities and processes, so that one can experience, think and communicate about one thing in terms of another –

Organizations and Markets

In classical and neoclassical economic theory, markets are at the center of the stage. The actors in these markets are workers and consumers (sometimes combined into households), firms, owners of

The special interdisciplinary contribution of institutional economics

  • D. Chinitz
  • Economics
    Health Economics, Policy and Law
  • 2013
Institutional economics will be compared with other purportedly interdisciplinary approaches to health policy analysis: first, interdisciplinary studies of the politics of health regarding macro health policy and also rationing of health care; and second, behavioral economics.

Devil's Advocate: The Importance of Metaphors

As accounting practitioners, educators, researchers, and/or standard-setters, we devote much time and attention to develop the skills to perform our roles effectively. Paying close attention to the

Snudging Cheapskates and Magnificent Profusion. The conceptual baggage of 'mean' and 'generous'

The way people behave with money communicates a great deal about their character. In this chapter, we examine the ‘conceptual baggage’ (McConnell-Ginet, Language, 84(3), 497–527, 2008) for synonyms

Discourse and the Linguistic Landscape

Research into the way that linguistic and other semiotic signs are displayed in public space has opened up a productive field for social language analysis over the last few years. Often focused on

От трансакционных издержек – к трансакционной ценности: преодолевая фрикционную парадигму

The transaction cost economics has accumulated a mass of dogmatic concepts and assertions that have acquired high stability under the influence of path dependence. These include the dogma about

Original Institutional Economics Outside the United States: The Brazilian Chapter

Abstract This study intends to examine the roots of Original Institutional Economics (OIE) in Brazil. We rely on two methodologies to analyze the dissemination of OIE in Brazil: a bibliometric study,



Metaphors of Knowledge in Economics

"Knowledge" takes a central place in economics. This paper shows that the metaphor pervasively used in neoclassical economics to understand knowledge is that of "capital". Taking capital as a

The rhetoric of Oliver Williamson's transaction cost economics

  • H. Pessali
  • Economics
    Journal of Institutional Economics
  • 2006
Bounded rationality, opportunism, the primacy of markets and the action of economizing are building blocks of Oliver Williamson's Transaction Cost Economics (TCE). As in all intellectual exchanges,

Theoretical isolation and explanatory progress: transaction cost economics and the dynamics of dispute

Two related goals are pursued. First, the development of, and debates around Oliver Williamson's version of transaction cost economics are organised in terms of an emerging metatheoretical framework.

Markets and Hierarchies and (Mathematical) Economic Theory

Over the past decade transaction-cost economics has been partially translated in the more mathematical language of game theory, and understanding of the costs of transactions has been deepened,

The Mechanisms of Governance

This book brings together in one place the work of one of our most respected economic theorists, on a field which he has played a large part in originating: the New Institutional Economics.

Firms, markets, and hierarchies : the transaction cost economics perspective

This book examines transaction cost economics, the influential theoretical perspective on organizations and industry that was the subject of Oliver Williamson's seminal book,Markets and Hierarchies

Bad for Practice: A Critique of the Transaction Cost Theory

Transaction cost economics (TCE), and more specifically the version of TCE that has been developed by Oliver Williamson (1975, 1985, 1993b), has become an increasingly important anchor for the

Accounting as the master metaphor of economics

It is now sixteen or seventeen years since I saw the Queen of France, then the Dauphiness, at Versailles. … Little did I dream that I should have lived to see disasters fallen upon her in a nation of

Capabilities and Governance: The Rebirth of Production in the Theory of Economic Organization

We argue that since Coase’s seminal 1937 paper on “The Nature of the Firm,” there has been an odd and unjustified separation between price theory and the economics of organization. For example,

The Theory of the Firm as Governance Structure: From Choice to Contract

The propositions that organization matters and that it is susceptible to analysis were long greeted by skepticism by economists. One reason why this message took a long time to register is that it is