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An inquiry into the explanatory virtues of transaction cost economics

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  • 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
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    References listed on IDEAS

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    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. 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.
    3. 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.
    4. Kurz, Mordecai, 1974. "Equilibrium in a Finite Sequence of Markets with Transaction Cost," Econometrica, Econometric Society, vol. 42(1), pages 1-20, January.
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    6. 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.
    7. 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.
    8. Lukasz, Hardt, 2009. "The history of transaction cost economics and its recent developments," MPRA Paper 17989, University Library of Munich, Germany.
    9. Williamson, Oliver E., 1988. "Technology and transaction cost economics : A reply," Journal of Economic Behavior & Organization, Elsevier, vol. 10(3), pages 355-363, October.
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    13. 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.
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    More about this item

    Keywords

    Oliver Williamson; explanatory power;

    JEL classification:

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

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