IDEAS home Printed from https://ideas.repec.org/a/bus/jphile/v5y2011i1p120-147.html

An inquiry into the explanatory virtues of transaction cost economics

Author

Listed:
  • Lukasz Hardt

    (University of Warsaw)

Abstract

The aim of this paper is twofold. First, we offer a methodological reflection on how the explanatory virtues of economic theories can be assessed in a systematic way. Second, we use that theoretical apparatus to study the explanatory virtues of Transaction Cost Economics (TCE, henceforth). Precisely, we are primarily interested in assessing the progress within TCE with respect to its explanatory power rather than directly comparing TCE’s explanatory virtues to alternative theories. The paper offers also some general insights into the way we compare economic theories.

Suggested Citation

  • Lukasz Hardt, 2011. "An inquiry into the explanatory virtues of transaction cost economics," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 5(1), pages 120-147, November.
    • Handle: RePEc:bus:jphile:v:5:y:2011:i:1:p:120-147
    as

    Download full text from publisher

    File URL: http://jpe.ro/pdf.php?id=2905
    Download Restriction: no
    File URL: http://jpe.ro/?id=revista&p=143
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Oliver E. Williamson, 1967. "Hierarchical Control and Optimum Firm Size," Journal of Political Economy, University of Chicago Press, vol. 75(2), pages 123-123.
    2. Williamson, Oliver E., 1988. "Technology and transaction cost economics : A reply," Journal of Economic Behavior & Organization, Elsevier, vol. 10(3), pages 355-363, October.
    3. Oliver Williamson, 1994. "Research Needs and Opportunities in Transaction Cost Economics," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(1), pages 45-46.
    4. Fischer, Stanley, 1977. "`Long-term contracting, sticky prices, and monetary policy' : A comment," Journal of Monetary Economics, Elsevier, vol. 3(3), pages 317-323, July.
    5. Klaes, Matthias, 2000. "The Birth of the Concept of Transaction Costs: Issues and Controversies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 9(4), pages 567-593, December.
    6. Francine Lafontaine & Margaret Slade, 2007. "Vertical Integration and Firm Boundaries: The Evidence," Journal of Economic Literature, American Economic Association, vol. 45(3), pages 629-685, September.
    7. Williamson, Oliver E., 1996. "Transaction cost economics and the Carnegie connection," Journal of Economic Behavior & Organization, Elsevier, vol. 31(2), pages 149-155, November.
    8. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    9. Pessali, Huascar F., 2006. "The rhetoric of Oliver Williamson's transaction cost economics," Journal of Institutional Economics, Cambridge University Press, vol. 2(1), pages 45-65, April.
    10. Kurz, Mordecai, 1974. "Equilibrium in a Finite Sequence of Markets with Transaction Cost," Econometrica, Econometric Society, vol. 42(1), pages 1-20, January.
    11. Carroll, Glenn R. & Teece, David J. (ed.), 1999. "Firms, Markets, and Hierarchies: The Transaction Cost Perspective," OUP Catalogue, Oxford University Press, number 9780195119510.
    12. Uskali Mäki, 2004. "Theoretical isolation and explanatory progress: transaction cost economics and the dynamics of dispute," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 28(3), pages 319-346, May.
    13. Klaes, Matthias, 2001. "Begriffsgeschichte: between the Scylla of Conceptual and the Charybdis of Institutional History of Economics," Journal of the History of Economic Thought, Cambridge University Press, vol. 23(2), pages 153-179, June.
    14. Richard Lipsey, 2001. "Successes and failures in the transformation of economics," Journal of Economic Methodology, Taylor & Francis Journals, vol. 8(2), pages 169-201.
    15. Lukasz, Hardt, 2009. "The history of transaction cost economics and its recent developments," MPRA Paper 17989, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Łukasz Hardt, 2006. "Narodziny i ewolucja treści znaczeniowej wyrażenia „koszt transakcyjny”," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 11-12, pages 1-24.
    2. Hardt, Łukasz, . "Narodziny i ewolucja treści znaczeniowej wyrażenia „koszt transakcyjny”," Gospodarka Narodowa-The Polish Journal of Economics, Szkoła Główna Handlowa w Warszawie / SGH Warsaw School of Economics, vol. 2006(11-12).
    3. Todorova, Tamara, 2022. "Оливър Уилямсън: Новатор На 20 Век И Основател На Новата Институционална Икономика [Oliver Williamson: an innovator of the 20th century and founder of the new institutional economics]," MPRA Paper 121077, University Library of Munich, Germany.
    4. Marta Gancarczyk, 2015. "Proces wzrostu przedsiębiorstwa w świetle podejścia zasobowego i teorii kosztów transakcyjnych," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 5, pages 5-31.
    5. Gancarczyk, Marta, . "Proces wzrostu przedsiębiorstwa w świetle podejścia zasobowego i teorii kosztów transakcyjnych," Gospodarka Narodowa-The Polish Journal of Economics, Szkoła Główna Handlowa w Warszawie / SGH Warsaw School of Economics, vol. 2015(5).
    6. Oliver E. Williamson, 2005. "The Economics of Governance," American Economic Review, American Economic Association, vol. 95(2), pages 1-18, May.
    7. Miguel Espinosa, 2021. "Labor Boundaries and Skills: The Case of Lobbyists," Management Science, INFORMS, vol. 67(3), pages 1586-1607, March.
    8. Jaideep Shenoy, 2012. "An Examination of the Efficiency, Foreclosure, and Collusion Rationales for Vertical Takeovers," Management Science, INFORMS, vol. 58(8), pages 1482-1501, August.
    9. Ahmad, Muhammad Farooq & Kowalewski, Oskar, 2021. "Collective bargaining power and corporate cash policy," International Review of Law and Economics, Elsevier, vol. 68(C).
    10. Angela Ambrosino & Magda Fontana & Anna Azzurra Gigante, 2018. "Shifting Boundaries In Economics: The Institutional Cognitive Strand And The Future Of Institutional Economics," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 767-791, July.
    11. Nobel Prize Committee, 2016. "Oliver Hart and Bengt Holmström: Contract Theory," Nobel Prize in Economics documents 2016-1, Nobel Prize Committee.
    12. Macchiavello, Rocco & Miquel-Florensa, Josepa, 2017. "Vertical Integration and Relational Contracts: Evidence from the Costa Rica Coffee Chain," CEPR Discussion Papers 11874, C.E.P.R. Discussion Papers.
    13. Jaideep Shenoy, 2021. "Firm vertical boundaries, internal capital markets, and firm performance," European Financial Management, European Financial Management Association, vol. 27(1), pages 59-97, January.
    14. Achim Hecker, 2009. "Determinanten von Offshore-Outsourcing-Aktivitäten im deutschen Mittelstand," Schmalenbach Journal of Business Research, Springer, vol. 61(6), pages 628-653, September.
    15. Jordi Perdiguero, 2011. "Vertical relations and local competition: an empirical approach," IREA Working Papers 201124, University of Barcelona, Research Institute of Applied Economics, revised Dec 2011.
    16. René van den Brink & Robert P. Gilles, 2003. "Explicit and Latent Authority in Hierarchical Organizations," Tinbergen Institute Discussion Papers 03-102/1, Tinbergen Institute.
    17. Bürker, Matthias & Mammi, Irene & Minerva, G. Alfredo, 2021. "Civic capital and service outsourcing: Evidence from Italy," European Economic Review, Elsevier, vol. 138(C).
    18. Diego A. Comin & Xavier Cirera & Marcio Cruz, 2025. "Technology Sophistication Across Establishments," NBER Working Papers 33358, National Bureau of Economic Research, Inc.
    19. Feng Zhu & Qihong Liu, 2018. "Competing with complementors: An empirical look at Amazon.com," Strategic Management Journal, Wiley Blackwell, vol. 39(10), pages 2618-2642, October.
    20. Axelle Poizat & Sabine Duvaleix & Jill Hobbs, 2022. "How does transaction governance in the animal supply chain influence antibiotic use? A study of the French young bull sector," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(4), pages 1890-1908, December.

    More about this item

    Keywords

    ;
    ;

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bus:jphile:v:5:y:2011:i:1:p:120-147. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Valentin Cojanu (email available below). General contact details of provider: https://edirc.repec.org/data/aseeero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.