Institutional Economics at the Micro Level? What Transaction Costs Theory Could Listen From Original Institutionalism (In the Spirit of Building Bridges)
AbstractInertia in academia sometimes obstructs the development of important insights. That is one reason for the specially long gap separating Coase's seminal paper  that laid the foundations of current Transaction Cost Economics (TCE) and the efforts of scholars to develop his ideas. But as TCE evolved and merged with the name of Oliver Williamson, it has absorbed a tension 'between an intuitive commitment to realism...and his commitment to some core presumptions of mainstream economics' [Hodgson 1998]. Most TCE scholars seem to rely on the latter commitment, and this could mean losing a chance of enriching economics in its methodological and theoretical foundations. This paper regroups and comments criticisms from 'Original' Institutional Economics (OIE) to TCE in the spirit of building bridges on: i) discrepancies among TCE’s and Commons’ concepts of transaction; ii) TCE’s use of efficiency as a status quo rationalization; iii) the static analysis that ignores institutional feed-backs; iv) the assumption of opportunism; and v) the incompatibility of bounded rationality and optimizing behavior.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Method and Hist of Econ Thought with number 0511001.
Length: 11 pages
Date of creation: 13 Nov 2005
Date of revision:
Note: Type of Document - pdf; pages: 11
Contact details of provider:
Web page: http://22.214.171.124
Transaction Cost Economics; Oliver Williamson; New Institutional Economics; Institutionalism; transaction costs;
Other versions of this item:
- Huascar Pessali & Ramon Fernandez, 2005. "Institutional Economics at the Micro Level? What Transaction Costs Theory Could Listen From Original Institutionalism (In the Spirit of Building Bridges)," Industrial Organization 0511006, EconWPA.
- B - Schools of Economic Thought and Methodology
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-11-19 (All new papers)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Elsner, Wolfram & Hocker, Gero & Schwardt, Henning, 2009. "Simplistic vs. Complex Organization: Markets, Hierarchies, and Networks in an 'Organizational Triangle'," MPRA Paper 14315, University Library of Munich, Germany.
- Janis Kapler, . "The Theory of the Firm, the Theory of Competition and the Transnational Corporation," Working Papers 6, University of Massachusetts Boston, Economics Department.
- Jonathan Gander & Alison Rieple, 2004. "How Relevant is Transaction Cost Economics to Inter-Firm Relationships in the Music Industry?," Journal of Cultural Economics, Springer, vol. 28(1), pages 57-79, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.