Transaction cost analysis

Erik Mooi

Research output: Chapter in Book/Report/Conference proceedingEntry for encyclopedia/dictionary

Abstract

Transaction cost theory is one of the most widely used theories in marketing, management, and economics. The focus of the theory is on explaining how firms organize transactions. The rules by which transactions are organized is called governance. A wide variety of strategic decisions of firms, such as outsourcing, the mode of organizing exports, the use of crowdsourcing, or partner selection efforts, can be analyzed and understood using transaction cost theory. The basic argument of transaction cost theory is that firms economize on costs by choosing a form of governance that minimizes production and transaction costs. We discuss the origins and uses of the theory, critical variables, assumptions, and limitations.
Original languageEnglish
Title of host publicationWiley encyclopedia of management
EditorsCary L. Cooper
PublisherWiley
Volume9
Edition3rd
ISBN (Electronic)978-1-118-78531-7
ISBN (Print)978-1-119-97251-8
DOIs
Publication statusPublished - 26 Sep 2014

Fingerprint

Transaction cost theory
Transaction cost analysis
Governance
Transaction costs
Costs
Outsourcing
Organizing
Economics
Production cost
Marketing management
Critical theory
Partner selection
Strategic decisions

Keywords

  • transaction cost theory
  • governance
  • strategy
  • outsourcing
  • contract

Cite this

Mooi, E. (2014). Transaction cost analysis. In C. L. Cooper (Ed.), Wiley encyclopedia of management (3rd ed., Vol. 9). Wiley. https://doi.org/10.1002/9781118785317.weom090269
Mooi, Erik. / Transaction cost analysis. Wiley encyclopedia of management. editor / Cary L. Cooper. Vol. 9 3rd. ed. Wiley, 2014.
@inbook{db29477f41c540549527b7a52ef63382,
title = "Transaction cost analysis",
abstract = "Transaction cost theory is one of the most widely used theories in marketing, management, and economics. The focus of the theory is on explaining how firms organize transactions. The rules by which transactions are organized is called governance. A wide variety of strategic decisions of firms, such as outsourcing, the mode of organizing exports, the use of crowdsourcing, or partner selection efforts, can be analyzed and understood using transaction cost theory. The basic argument of transaction cost theory is that firms economize on costs by choosing a form of governance that minimizes production and transaction costs. We discuss the origins and uses of the theory, critical variables, assumptions, and limitations.",
keywords = "transaction cost theory, governance, strategy, outsourcing, contract",
author = "Erik Mooi",
year = "2014",
month = "9",
day = "26",
doi = "10.1002/9781118785317.weom090269",
language = "English",
isbn = "978-1-119-97251-8",
volume = "9",
editor = "Cooper, {Cary L.}",
booktitle = "Wiley encyclopedia of management",
publisher = "Wiley",
edition = "3rd",

}

Mooi, E 2014, Transaction cost analysis. in CL Cooper (ed.), Wiley encyclopedia of management. 3rd edn, vol. 9, Wiley. https://doi.org/10.1002/9781118785317.weom090269

Transaction cost analysis. / Mooi, Erik.

Wiley encyclopedia of management. ed. / Cary L. Cooper. Vol. 9 3rd. ed. Wiley, 2014.

Research output: Chapter in Book/Report/Conference proceedingEntry for encyclopedia/dictionary

TY - CHAP

T1 - Transaction cost analysis

AU - Mooi, Erik

PY - 2014/9/26

Y1 - 2014/9/26

N2 - Transaction cost theory is one of the most widely used theories in marketing, management, and economics. The focus of the theory is on explaining how firms organize transactions. The rules by which transactions are organized is called governance. A wide variety of strategic decisions of firms, such as outsourcing, the mode of organizing exports, the use of crowdsourcing, or partner selection efforts, can be analyzed and understood using transaction cost theory. The basic argument of transaction cost theory is that firms economize on costs by choosing a form of governance that minimizes production and transaction costs. We discuss the origins and uses of the theory, critical variables, assumptions, and limitations.

AB - Transaction cost theory is one of the most widely used theories in marketing, management, and economics. The focus of the theory is on explaining how firms organize transactions. The rules by which transactions are organized is called governance. A wide variety of strategic decisions of firms, such as outsourcing, the mode of organizing exports, the use of crowdsourcing, or partner selection efforts, can be analyzed and understood using transaction cost theory. The basic argument of transaction cost theory is that firms economize on costs by choosing a form of governance that minimizes production and transaction costs. We discuss the origins and uses of the theory, critical variables, assumptions, and limitations.

KW - transaction cost theory

KW - governance

KW - strategy

KW - outsourcing

KW - contract

UR - https://onlinelibrary.wiley.com/doi/abs/10.1002/9781118785317.weom090269

U2 - 10.1002/9781118785317.weom090269

DO - 10.1002/9781118785317.weom090269

M3 - Entry for encyclopedia/dictionary

SN - 978-1-119-97251-8

VL - 9

BT - Wiley encyclopedia of management

A2 - Cooper, Cary L.

PB - Wiley

ER -

Mooi E. Transaction cost analysis. In Cooper CL, editor, Wiley encyclopedia of management. 3rd ed. Vol. 9. Wiley. 2014 https://doi.org/10.1002/9781118785317.weom090269