The Economic Institutions of Capitalism
The Economic Institutions of Capitalism is a book by Oliver E. Williamson. For Williamson, transaction cost includes the cost incurred in contracting. The book explains principles of transaction cost economics, and applies the transaction cost to theory of institutions. The book explains bounded rationality and opportunism. Based on bounded rationality and opportunism, He analyze economic organizations. He explores trade-offs between the costs of bureaucratic governance and market. Williamson explains the size of firm using the concept of costs of bureaucracy. Williamson explains the use of private orderings. And he explores how to protect institutions from opportunism, such as ownership integration, joint and several ownership in common, financing and incomplete integration of ownership. He explores on the role of credible commitments.[1][2][3]
Reference
[edit]- ^ Williamson, Oliver E. (1985). The economic institutions of capitalism: firms, markets, relational contracting. Macmillan. ISBN 0-02-934821-8.
- ^ Alchian, Armen A.; Woodward, Susan (1988). "The Firm Is Dead; Long Live The Firm a Review of Oliver E. Williamson's The Economic Institutions of Capitalism". Journal of Economic Literature. 26 (1): 65–79. ISSN 0022-0515.
- ^ Masten, Scott E. (1986). "The Economic Institutions of Capitalism: A Review Article". Journal of Institutional and Theoretical Economics (JITE) / Zeitschrift für die gesamte Staatswissenschaft. 142 (2): 445–451. ISSN 0932-4569.