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8 Cards in this Set
- Front
- Back
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neoclassical theory of the firm
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size of the firm is determined by economies of scale
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costs of using the market
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determine what you're buying, determine the price
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costs of internal organization
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administrative burden, misallocation of resources
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contract
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market transaction
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3 costs to using contracts
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degree of uncertainty
frequency of transactions extent of asset specificity |
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opportunism
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self interest seeking with guile
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trilateral governance
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buyer, seller, and arbitrator- used with specific assets and occasional dealing
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ownership integration
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transactions within the firm- used with specialized assets and frequent dealing
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