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Transactions cost and boundary of the firm

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  • Robert Vitík
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    Abstract

    This paper presents the basics of the Transaction cost theory (TCT) and shows it's contribution to the Theory of the firm by the view of the new institutional economics. In the first part, author presents resources and presumptions of the TCT mainly by O. E. Williamson. The theory is based on asset specificity. The formal model with the human asset specificity is supposed to reply following questions. Why the firm arise and where is the boundary of the firm? In the second part, the model TCT is extending by knowledge-based explanations of the firm.

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    Bibliographic Info

    Article provided by University of Economics, Prague in its journal Ekonomika a Management.

    Volume (Year): 2008 (2008)
    Issue (Month): 3 ()
    Pages:

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    Handle: RePEc:prg:jnleam:v:2008:y:2008:i:3:id:31

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    Keywords: Teorie transakčních nákladů; Boundary of the firm; Teorie firmy založená na znalostech; Theory of the firm; Teorie firmy; Knowledge-based view; Specifičnost lidských aktiv; Human asset specificity; Hranice firmy; Transaction cost theory;

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    1. Williamson, Oliver E, 1973. "Markets and Hierarchies: Some Elementary Considerations," American Economic Review, American Economic Association, vol. 63(2), pages 316-25, May.
    2. Garrouste, Pierre & Saussier, Stephane, 2005. "Looking for a theory of the firm: Future challenges," Journal of Economic Behavior & Organization, Elsevier, vol. 58(2), pages 178-199, October.
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