Contracts and Transaction Costs in New Institutional Economics

Bilateral contracts with transaction costs

The paper studies bilateral contracting with endogenous property rights. Players engage in costly ex post adjustment of ex ante contract. After ex ante agreement on surplus sharing, players invest irreversibly production. Player costs of altering ex ante contract are transaction costs of three kinds: measurement, information and enforcement costs. Each player chooses an action which incurs tran...

A New Institutional Economics Approach to Contracts and Cooperatives

This article discuss about agricultural cooperatives capital structures with the New Institutional Economics Approach, in particular the Transaction Cost Economics point of view. At the end, it is possible to conclude that the cooperative enterprises, as a consequence of the financial and social structure governance costs, present a wider structure of transaction and agency costs, when compared...

Recognizing Transaction Costs Associated with Offshore Outsourcing to India through the Use of New Institutional Economics

Theoretical Integration of New Institutional Economics

The purpose of this study is to investigate the theoretical integration or eclecticism of New Institutional Economics (NIE) on the basis of the four-stage Tillings model. The first step demonstrates that the new institutionalists, as to confront the hegemonic scientific mainstream, stated that their goal was to moderate neoclassical assumptions, but in fact, their main goal was to expand and st...

Transaction Costs in Institutional Environment and Entry Mode Choice

In the study presented institutional context is discussed in terms of companies’ entry mode choice. In contrary to many previous analyses, instead of using one or two aggregated variables, a set of eleven determinants is used to establish equity and non-equity internationalization friendly conditions. Based on secondary data, 140 countries are analyzed and grouped into clusters revealing simila...