Preview
Preview

Essay on Characteristics of Transaction Cost Economics

:: 6 Works Cited
Length: 2094 words (6 double-spaced pages)
Rating: Aqua      
Open Document
Need writing help? Check your paper »



- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

In the current competitive business situation, the budget of each investment is likely to be tight. From the beginning of the investment, the cost management might conduct for the best efficiency. Nowadays, firms work with not only domestic industries but also international suppliers. The channel of business opportunities has been developed widely. Global business interaction seems to bring about the relationship between the firm and supplier how to make a profit effectively. In addition, it might be possible to say that this circumstance leads to enhance the domestic industrial relationship too.

It cannot deny that the relationship with other organizations might be significant factor to manage the businesses in current competitive market. In the vertical chain of business process, the firm has to consider what is the efficient way to acquire the profit, which is created by make or buy decision in the vertical boundaries. This paper will be examined following three parts. Firstly, the back grand of the theory will be reviewed briefly. Secondly, the characteristics of the transaction cost economics (TCE) will be mentioned how to work in the vertical boundaries, including some sample cases. Finally, the critical role of TCE and key concept for the vertical chain co-ordination will be revealed.

First of all, the theory of transaction cost was stated by Coase. He issued his literature, The Nature of the Firm in the year 1937. Knight (Coase in Williamson and Winter, 1993) said that the determinants of the firm size are impossible to treat in the transaction. Because the size of the firms are made by market transaction, and the transactions are organized depend on several entrepreneurs. Dobb (Coase in Williamson and Winter, 1993)...


... middle of paper ...


...

Besanko, D., Dranove, D. & Shanley, M., Schaefer, S. 2010a. Economics of Strategy. 5th ed. New Jersey: John Wiley & Sons.

Besanko, D., Dranove, D. & Shanley, M., Schaefer, S. 2010b. Figure 5.4: Summarizing the frameworks: An issue tree [picture] John Wiley & Sons.

Coase, R., 1937. The Nature of the Firm. In: O. Williamson & S. Winter, ed. 1993. The Nature of the firm: Origins, Evolution, and Development. Oxford: Oxford University Press. Ch.2.

Khalil, E., n.d. After the special nature of the firm: Beyond the critics of orthodox neoclassical economics. In: Groenewegen, J., ed. 1996. Transaction cost economics and beyond. Ch.15.

McNutt, P., 2010a. Transaction Cost Economics (TCE) and the Modern Company [Online] Available: http://www.patrickmcnutt.com/kaelo2/kaelo.html (Accessed Aug 2010)

McNutt, P., 2010b. Game Embedded Strategy. New York: McGraw-Hill


Click the button above to view the complete essay, speech, term paper, or research paper

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »







This essay is 100% guaranteed.


Title Length Color Rating  
Environmental Economics and Government Policy Essay - Economists often talk about letting the economy work through the mechanism of the free market versus government control and regulation. Some believe that if the market is allowed to "do its thing" unprohibited and without government interference, then resources will be allocated efficiently, equilibrium will be found, and so on… However, this is not always possible. Of course, government control is not perfect either. Thus, it would seem that at times the market may be more appropriate than the government; other times the government may be needed because the market is not able to function properly; and other times a combination of the two working in unison may provide the best and mos...   [tags: Economics and Community]
:: 1 Works Cited
3398 words
(9.7 pages)
Term Papers [preview]
Are the Business Cycles of Capitalistic Economics Reponsible for the Inadequate Income Distribuation and Poverty in United States - Do the Business cycles of capitalistic economies are directly responsible for the inadequate income distribution and poverty in the American economy. To examine this question, we need to know the meaning of capitalistic economy system. According to Wikipedia “Capitalism is an economic system based on private ownership of the means of production and capital goods, and the production of goods and services for profit in a market economy. Central characteristics of capitalism include the process of capital accumulation, competitive markets, and wage labor....   [tags: advantages, market, economics, poverty]
:: 1 Works Cited
721 words
(2.1 pages)
Better Essays [preview]
Transaction Cost Economics and Organized Labor Essays - Cooperation and exchange among individuals often organize in firms rather than adhering to market institutions. This anomaly of market systems can be explained through what Oliver Williamson calls “Transaction Cost Economics.” Transaction costs are defined as the “costs of running the economic system” (Williamson 18). Similar to friction in a physical system, transaction costs may be small compared to other costs such encountered by market players, but basing entire models on a ‘frictionless’ system is unrealistic....   [tags: Economics Market Essays] 1017 words
(2.9 pages)
Better Essays [preview]
Characteristics of Management Information System and Transaction Processing Systems - Answer to Question 1 Introduction Organizations whether profit oriented or not are becoming increasingly dependent on computerised information systems in carrying out their day-to-day activities. A proper application of this process of business digitalization is helping improve customer experience and reducing long-term cost of running businesses and other organizations. A management information system (MIS), according to Shelly, Cashman and Vermaat, (2008) is an information system that generates accurate, timely and organized information so managers and other users can make decisions, solve problems, supervise activities, and track progress....   [tags: information, recording data, output]
:: 12 Works Cited
1418 words
(4.1 pages)
Powerful Essays [preview]
Real Estate Industry Essay - Introduction Real estate is a fixed, tangible and immovable asset in form of houses or commercial property (Seldin & Richard 1985). Real estate market involves developing, renting, selling/purchasing and renovating of these assets (houses). Market participants includes developers (contractors, engineers, and so on), facilitators (mortgage companies, real estate brokers, banks, management agents and so on), owners, renters (leasers) and renovators (Seldin & Richard 1985). Like other economic markets, real estate markets have internal and external forces that make impacts in the market (Seldin & Richard 1985)....   [tags: Economics] 1820 words
(5.2 pages)
Strong Essays [preview]
The Cost-of-Production Theory Essay - ... Since resources are limited and human wants are unlimited, people and societies must make choices about what they want most or put more simply, "What you would have done if you didn't make the choice that you did". Each choice involves costs. The cost-of-production theory of value is the theory that the price of an object or condition is determined by the sum of the cost of the resources that went into making it. The cost can comprise any of the factors of production (including labor, capital, or land) and taxation....   [tags: opportunity cost, economic model] 675 words
(1.9 pages)
Better Essays [preview]
Essay about Macroeconomic Impact - Macroeconomic Impact on Business Operations Many have heard the phrase "Money makes the world go round", but where does money come from. The United States, like most other countries today, has a fractional reserve banking system in which only a fraction of the total money supply is held in reserve as currency. Early traders began to use gold in making transactions; they soon realized that it was both unsafe and inconvenient to carry gold and to have it weighed every time they negotiated a transaction....   [tags: Economics] 1537 words
(4.4 pages)
Strong Essays [preview]
Tps - A Transaction Processing System Essays - Introduction Transactions are the routine day-to-day activities performed by most organisations. · some are commercial transactions (buying, selling products and services, paying bills etc) · others involve recording or retrieving data (making a booking, enrolling a student at university looking up results etc) Most individual transactions are relatively simple, but in most organisations, there are very large numbers of them - so speed and efficiency are important considerations. What is a TPS....   [tags: Research] 1378 words
(3.9 pages)
Strong Essays [preview]
Low Cost Carrier Characteristics Essay - The idea to enter the world of the full cost carriers by low prices isn’t a new one. Already in 1977 Laker Airways founded the “Sky Train” between London and New York. Even if this service was never successful, more and more low cost carriers were founded during the progress of deregulation and the development of an own low cost strategy began. When we today have a look at the homepages of low cost carriers we cannot but state that nearly all of them are operating successful despite the issues of September 11th in 2001, SARS in 2002 and the war in Iraq in 2003....   [tags: Business Analysis Management Market] 1874 words
(5.4 pages)
Strong Essays [preview]
Essay on Economics in Asia - Since the mid 1960s, Pacific Asia has had a remarkable rate of economic growth. This growth has been sustainable and faster than all other regions of the world (see fig. 1). This region consists of twenty-three economies but it was just eight who caused most of this amazing growth. The eight were Hong Kong, the Republic of Korea, Singapore, Taiwan, China, (the “Four Tigers”) Japan and the newly industrialised economies (NIEs) of south-east Asia, Indonesia, Malaysia, and Thailand. The eight high performing Asian economies (HPAEs) mentioned here will be the focus of this essay....   [tags: Pacific Asia Economics] 1124 words
(3.2 pages)
Strong Essays [preview]