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A Concept of Two Authors: Commons and Williamson on Transactions

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  • Sebastião Neto Ribeiro Guedes
  • Rodrigo Constantino Jeronimo

Abstract

The idea of transactions in social sciences was conceived by John Rogers Commons in the beginning of the 1920s, representing a mental instrument capable of describing capitalism and its peculiarities. On the other hand, Oliver Williamson’s approach in late 1970s reduced the concept to the mere transfer of goods and services in institutions that are or are not guided by the price system. The aim of this article is to present the characteristics of these two different approaches to the concept of transactions, evidencing the role of epistemological aspects and investigative purposes (referred to relevant research context and problem originated in it) as the causes of its metamorphosis. John Commons’ effort to build up a concept not only capable of transcending the idea of exchange but also of giving a totalising perspective to the interpretation of capitalism is emptied in Williamson’s appropriation of the term. By utilising Commons’ conception of transactions and trying to subsume it to his ‘general theory of transaction costs’, Williamson limits its scope and meaning, adjusting it without producing rupture with the neoclassical economy. This article tries to catch the vicissitudes of this concept found in both authors. JEL: B15, B25, B31

Suggested Citation

  • Sebastião Neto Ribeiro Guedes & Rodrigo Constantino Jeronimo, 2023. "A Concept of Two Authors: Commons and Williamson on Transactions," Journal of Interdisciplinary Economics, , vol. 35(1), pages 61-82, January.
    • Handle: RePEc:sae:jinter:v:35:y:2023:i:1:p:61-82
    DOI: 10.1177/02601079211037482
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    References listed on IDEAS

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    1. Kaufman, Bruce E., 2017. "The Origins And Theoretical Foundation Of Original Institutional Economics Reconsidered," Journal of the History of Economic Thought, Cambridge University Press, vol. 39(3), pages 293-322, September.
    2. Williamson, Oliver E., 2010. "Transaction Cost Economics: The Natural Progression," Journal of Retailing, Elsevier, vol. 86(3), pages 215-226.
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    4. Yngve Ramstad, 2001. "John R. Commons’s Reasonable Value and the Problem of Just Price," Journal of Economic Issues, Taylor & Francis Journals, vol. 35(2), pages 253-277, June.
    5. Yngve Ramstad, 1986. "A Pragmatist’s Quest for Holistic Knowledge: The Scientific Methodology of John R. Commons," Journal of Economic Issues, Taylor & Francis Journals, vol. 20(4), pages 1067-1105, December.
    6. Clive Lawson, 1996. "Holism and Collectivism in the Work of J. R. Commons," Journal of Economic Issues, Taylor & Francis Journals, vol. 30(4), pages 967-984, December.
    7. Thomas C. Leonard, 2015. "Progressive Era Origins of the Regulatory State and the Economist as Expert," History of Political Economy, Duke University Press, vol. 47(5), pages 49-76, Supplemen.
    8. Williamson, Oliver E, 1971. "The Vertical Integration of Production: Market Failure Considerations," American Economic Review, American Economic Association, vol. 61(2), pages 112-123, May.
    9. Thomas Kemp, 2006. "Of Transactions and Transaction Costs: Uncertainty, Policy, and the Process of law in the Thought of Commons and Williamson," Journal of Economic Issues, Taylor & Francis Journals, vol. 40(1), pages 45-58, March.
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    More about this item

    Keywords

    Institutional economics; transactions; John R. Commons; Oliver Williamson;
    All these keywords.

    JEL classification:

    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals

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