Preview
Preview

Essay on Characteristics of Transaction Cost Economics

:: 6 Works Cited
Length: 2094 words (6 double-spaced pages)
Rating: Aqua      
Open Document
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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








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]
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]
Paul A. Samuelson was the Last Generalist of Economics Essay - Paul A. Samuelson, one of the men who made Harvard’s reputation, made various contributions to modern economics. Samuelson brought numerous theories to the table, showing that math is an effective and necessary component of understanding economics. Furthermore, he discovered a new obstacle regarding inflation, known as “cost-push” inflation. But most importantly, Paul A. Samuelson has shown that economic theories can be timeless, however their implementation evolves around the current economic circumstances that are in play....   [tags: capital good, cost push, modern economics]
:: 7 Works Cited
1104 words
(3.2 pages)
Strong 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]
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]
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]
Essay on Engineering Cost Analysis - Engineering Cost Analysis Accurately forecasting the cost of projects is vital to the survival of any business or organization. Cost estimators develop the cost information that business owners or managers, professional design team members, and construction contractors need to make budgetary and feasibility determinations. From an Owner's perspective the cost estimate may be used to determine the project scope or whether the project should proceed....   [tags: Engineering Cost Analysis Finance] 1512 words
(4.3 pages)
Powerful Essays [preview]
Cost Descriptions Essay - Cost Descriptions Paper Introduction The goal of this paper is to help the HR Manager of a company understand current company budget decisions by having a clear understanding of the terms used to describe costs. This paper will discuss various terms used to describe costs such as fixed, variable, semi-variable, total, direct, indirect, sunk and historical. An example of each term will be given along with the description. At the conclusion of this paper the HR manager will have a clear understanding of the budget decisions being made by the company....   [tags: Business Cost Marketing Management] 725 words
(2.1 pages)
Good Essays [preview]