Exploring Transaction Cost Economics: A Deep Dive into Williamson's Theory

1. Define opportunism.

"Self-interest seeking with guile". Der er ex ante og ex post opportunism.

Altruistic behavior without any personal gain.

Random or haphazard decision making.

Blindly following others without understanding the consequences.

Opportunism refers to self-interest seeking with cunning or deception. It involves an individual taking advantage of situations for their own benefit, often without regard for ethical considerations.

Explanation

Opportunism refers to self-interest seeking with cunning or deception. It involves an individual taking advantage of situations for their own benefit, often without regard for ethical considerations.

2. What are ex ante transaction costs?

Trans.omkostninger ved forhandling og udformning af kontrakt inkl. brug af safeguards, screening osv.

Fees paid to third-party intermediaries

Costs incurred after a transaction is completed

Costs associated with market fluctuations

3. Hvad er ex post transaktionsomkostninger?

Omkostninger ved transport af varer efter en transaktion er gennemført.

Gebyrer for at annullere en transaktion efter afslutningen.

Omkostninger ved at drive den valgte governance struktur, opbygning af en relation, osv

Samlede omkostninger ved en transaktion før den er gennemført.

Ex post transaktionsomkostninger refererer specifikt til omkostninger forbundet med at opretholde en valgt strategi eller governance struktur efter en transaktion er fuldført, såsom vedligeholdelse af relationer og den generelle drift af den valgte tilgang.

Explanation

Ex post transaktionsomkostninger refererer specifikt til omkostninger forbundet med at opretholde en valgt strategi eller governance struktur efter en transaktion er fuldført, såsom vedligeholdelse af relationer og den generelle drift af den valgte tilgang.

4. What are the three dimensions of a transaction?

1. Buyer's reputation 2. Seller's location 3. Payment method

1. Transaktionsfrekvensen2. Usikkerhed3. Asset specificty

The correct dimensions of a transaction are related to frequency, uncertainty, and asset specificity, not buyer's reputation, seller's location, or payment method.

Explanation

The correct dimensions of a transaction are related to frequency, uncertainty, and asset specificity, not buyer's reputation, seller's location, or payment method.

5. What are the 6 general critique points of TCT?

6. What are the 5 specific criticism points against Transaction Cost Theory (TCT)?

O The concept of trust has no relevance in Transaction Cost Theory.

O Opportunism is easily eradicated within the framework of TCT.

O TCT accurately predicts all organizational behaviors.

Transaction Cost Theory has been subject to critique for its assumptions and limitations, such as the inability to measure transaction costs accurately, the debate around hierarchy reducing or inducing opportunism, and the importance of trust in economic exchanges.

Explanation

Transaction Cost Theory has been subject to critique for its assumptions and limitations, such as the inability to measure transaction costs accurately, the debate around hierarchy reducing or inducing opportunism, and the importance of trust in economic exchanges.