Transaction cost economics and beyond : towards a new economics of the firm

In recent years transaction costs economics have come to dominate the discussion of the nature and organization of firms. In Transaction Costs Economics and Beyond Michael Driscoll offers a critical exploration of transaction costs. He argues that whilst they have much to offer they are still an inadequate basis for a general theory of the firm. Drawing on theories of organizational behaviour as well as economics, he concludes by offering a theory of the firm that allows for both hierarchical and creative decision making. Front Cover ......Page 1 Title Page ......Page 4 Copyright ......Page 5 Dedication ......Page 6 Contents ......Page 8 Figures ......Page 9 Preface ......Page 10 1. INTRODUCTION......Page 13 Part I BEYOND TRANSACTION COSTS:THE BACKGROUND......Page 23 2. THE TRANSACTION COST PARADIGM......Page 25 3. A GENERAL FRAMEWORK......Page 39 Part II BEYOND TRANSACTIONCOSTS: THE BOUNDARIES OF THE FIRM......Page 56 4. THE DEVELOPMENT OF THE FIRM......Page 58 5. RELATED INTEGRATION AND THE FIRM......Page 72 6. UNRELATED INTEGRATION AND THE FIRM......Page 86 7. QUASI-INTEGRATION AND THE FIRM......Page 100 Part III A NEW ECONOMICS OF THE FIRM......Page 114 8. THE FIRM AND ECONOMIC THEORY......Page 116 9. THE FIRM AS A SYSTEM......Page 131 10. ECONOMIC POLICY AND THE FIRM......Page 147 11. CONCLUSIONS......Page 163 2. THE TRANSACTION COST PARADIGM......Page 169 3. A GENERAL FRAMEWORK......Page 170 4. THE DEVELOPMENT OF THE FIRM......Page 171 5. RELATED INTEGRATION AND THE FIRM......Page 172 6. UNRELATED INTEGRATION AND THE FIRM......Page 173 7. QUASI-INTEGRATION AND THE FIRM......Page 174 9. THE FIRM AS A SYSTEM......Page 175 11. CONCLUSIONS......Page 176 BIBLIOGRAPHY......Page 178 AUTHOR INDEX......Page 193 SUBJECT INDEX......Page 197 Transaction cost economics have come to dominate discussions about the nature of the firm. In this critical analysis of the transaction cost paradigm, Michael Dietrich argues that whilst it offers some vital insights, the transaction cost approach is an inadequate basis for a general theory of the firm. Beginning with an overview of transaction costs, the book pays particular attention to the work of Oliver Willaimson in outlining both the advantages and the disadvantages of the approach. Assuming that the organization of the firm is static, transaction cost economics is least effective in explaining the dynamic aspects of firms' behaviour. However, rather than rejecting the whole approach on these grounds, Michael Dietrich looks at ways in which the theory can be enlarged and its explanatory power increased. Considering such recent innovations as total quality control and just-in-time management. the book presents a vision of the firm in which decision making can be both hierarchical and creative. The implications of this for business policy are assessed In recent years transaction cost economics have come to dominate the discussion of the nature and organization of firms. In Transaction Costs Economics and Beyond Michael Dietrich offers a critical exploration of transaction costs. He argues that whilst they have much to offer, they are still an inadequate basis for a general theory of the firm. Drawing on theories of organizational behaviour as well as economics, he concludes by offering a theory of the firm that allows for both hierarchical and creative decision making. Dietrich offers a critical exploration of transaction costs, arguing that while they have much to offer, they are still an inadequate basis for a general theory of the firm.