Transaction-Cost Economics: The Governance of Contractual Relations

  title={Transaction-Cost Economics: The Governance of Contractual Relations},
  author={Oliver E. Williamson},
  journal={The Journal of Law and Economics},
  pages={233 - 261}
  • O. Williamson
  • Published 1 October 1979
  • Economics
  • The Journal of Law and Economics
THE new institutional economics is preoccupied with the origins, incidence, and ramifications of transaction costs. Indeed, if transaction costs are negligible, the organization of economic activity is irrelevant, since any advantages one mode of organization appears to hold over another will simply be eliminated by costless contracting. But despite the growing realization that transaction costs are central to the study of economics,' skeptics remain. Stanley Fischer's complaint is typical… 

Protection costs, transaction costs,and economic theory

Contractual reductionism takes market exchange as the ubiquitous form of economic organization throughout history. Transactions costs are accordingly regarded as the costs of running any economic

Opportunism and trust in transaction cost economics

Transaction cost economics (TCE) as developed by Williamson (1975, 1979, 1985, 1991) focuses on the relationship between attributes of transactions and characteristics of the governance structures

Risks and reputations: the economics of transaction costs

Uncertainty means that transaction costs have to be incurred by organisations whenever they make an agreement. These costs include time and money spent searching, drawing up and enforcing contracts

Transaction Cost Economics: The Natural Progression †

This manuscript provides the Nobel laureate's reflections on transaction cost economics. The overview section frames governance as the overarching concept and transaction cost economics as the means

Transaction Costs and Institutional Change

In modern economic analysis, the notion of transaction costs is used both as a technical concept in order to measure different kinds of costs related to contracting (search and information costs,

The Argumentational Texture of Transaction Cost Economics

The deconstruction method was used to analyze a seminal text in transaction cost economics, viz., Oliver Williamson's Economic Institutions of Capitalism. This deconstructive reading revealed that

Transaction Cost Regulation

The History of Transaction Cost Economics and its Recent Developments

The emergence of transaction cost economics (TCE) in the early 1970s with Oliver Williamson’s successful reconciliation of the socalled neoclassical approach with Herbert Simon’s organizational


Collective Agreements and the Law of Contracts

Professor Corbin relegated collective agreements to the periphery of contract law. His treatise briefly sketched the rights and duties created by collective agreements in a single section, placed