IDEAS home Printed from https://ideas.repec.org/a/mes/jeciss/v44y2010i4p1045-1072.html
   My bibliography  Save this article

Surveying the Transaction Cost Foundations of New Institutional Economics: A Critical Inquiry

Author

Listed:
  • Giorgos Meramveliotakis
  • Dimitris Milonakis

Abstract

The purpose of this article is to appraise the analytical usefulness of the new institutionalist approach by investigating the explanatory capacity of the transaction cost concept. After a discussion of the problems of defining the concept of transaction costs through the identification of three different uses of the term found in the literature, we turn to the problems associated with the analytical distinction between the institutional environment and organizations as players of the game, and more specifically to the treatment of organizations as individual actors. Further, it is shown that transaction costs as a concept is inherently unqualified for operationalization. Last, we examine the usefulness of the transaction cost concept in explaining the emergence of organizations by focusing on two specific cases, Coase's and Williamson's theories of the firm. Our conclusion is that the transaction cost concept cannot provide a sufficient rationale for explaining either the emergence of institutions or the origins of organizations given its static, ahistorical and universalistic nature.

Suggested Citation

  • Giorgos Meramveliotakis & Dimitris Milonakis, 2010. "Surveying the Transaction Cost Foundations of New Institutional Economics: A Critical Inquiry," Journal of Economic Issues, Taylor & Francis Journals, vol. 44(4), pages 1045-1072.
  • Handle: RePEc:mes:jeciss:v:44:y:2010:i:4:p:1045-1072 DOI: 10.2753/JEI0021-3624440410
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2753/JEI0021-3624440410
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. de Cecco, Marcello, 1979. "Origins of the Post-War Payments System," Cambridge Journal of Economics, Oxford University Press, vol. 3(1), pages 49-61, March.
    2. Francesco Forte & Roberto Marchionatti, 2012. "Luigi Einaudi's economics of liberalism," The European Journal of the History of Economic Thought, Taylor & Francis Journals, pages 587-624.
    3. Markwell, Donald, 2006. "John Maynard Keynes and International Relations: Economic Paths to War and Peace," OUP Catalogue, Oxford University Press, number 9780198292364.
    4. Mario Cedrini, 2008. "Consensus versus freedom or consensus upon freedom? from Washington disorder to the rediscovery of Keynes," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 30(4), pages 499-522, July.
    5. J. B. Davis, 1990. "Keynes and Organicism," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 12(2), pages 308-315, January.
    6. Anna Maria Carabelli & Mario Aldo Cedrini, 2007. "Current Global Imbalances: Might Keynes Be of Help?," Working Papers 113, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
    7. Anna Carabelli, 1998. "Keynes on Probability, Uncertainty and Tragic Choices," Cahiers d'Économie Politique, Programme National Persée, vol. 30(1), pages 187-226.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Edward Veckie & Vlado Walter Veckie, 2015. "Significance Of Reputation Through The Perspective Of Asset Specificity Transaction Cost Theory," Economy of eastern Croatia yesterday, today, tommorow, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 4, pages 509-517.

    More about this item

    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:mes:jeciss:v:44:y:2010:i:4:p:1045-1072. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/MJEI20 .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.