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6 The Transaction-Cost Approach In the last two chapters, we have studied how imperfect contract enforcement across countries shapes the global sourcing decisions of firms. The models in those chapters have illustrated how, other things equal, a particularly weak institutional environment will act as a deterrent for foreign firms seeking offshoring opportunities in a particular country. Furthermore, we have studied which type of product and industry characteristics tend to be associated with a disproportionately deleterious effect of weak contracting on the

Volume 3 2005 Article 2 Journal of Agricultural & Food Industrial Organization Losing Under Contract: Transaction-Cost Externalities and Spot Market Disintegration Michael J. Roberts, United States Department of Agriculture, Economic Research Service Nigel Key, United States Department of Agriculture, Economic Research Service Recommended Citation: Roberts, Michael J. and Key, Nigel (2005) "Losing Under Contract: Transaction-Cost Externalities and Spot Market Disintegration," Journal of Agricultural & Food Industrial Organization: Vol. 3: Iss. 2, Article 2. DOI

judgements and the connection between prohibitionist and permissive legislations within the transnational market for surrogacy services. In sub-Sections 5.1 and 5.2 the regulatory question is examined in the light of extant top-down and market allocation schemes. Based on a transaction-cost economics framework an argument is made that neither approach overcomes the constitutional arguments that uphold the ban to surrogacy. In the last section, an alternative approach to legal reform is briefly considered, grounded on private international law and supplemented by

Jahrbücher f. Nationalökonomie u. Statistik (Lucius & Lucius, Stuttgart 2007) Bd. (Vol.) 227/5+6 Die Ausgestaltung von Versorgungsverträgen: Eine vertragstheoretische Analyse A Contract Theory Approach to Health Care Contracting Von Axel Mühlbacher, Neubrandenburg JEL I11, I18, L14 Delivery of health care, integrated health care delivery systems; selektive contracting, risks, methods; transactioncost, contract theory, principal-agent theory, incomplete contracts. Summary Transaction costs are an obstacle to the efficient operation of selective contracting. Health

. Evolution und Organisation. Wiesbaden: Gabler. Weber, M., 1976: Wirtschaft und Gesellschaft. Grundriß der verstehenden Soziologie. 5. Aufl. Tübingen: Mohr/ Siebeck. Weber, M.,1988: Gesammelte Aufsätze zur Religions- soziologie I. 9. Aufl. Tübingen: Mohr/Siebeck. Williamson, O. E., 1975: Markets and Hierarchies. Analysis and Anti-Trust Implications, New York: Free Press. Williamson, O. E., 1979:Transaction-Cost Economics: The Governance of Contractual Relations. Journal of Law and Economics 22: 233–261. Williamson, O. E., 1990: Die Institutionen des Kapitalis- mus

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Contents Preface vii I Introduction 1 1 Made in the World 3 2 Workhorse Models 28 II Location 57 3 Contracts and Export Behavior 59 4 Contracts and Global Sourcing 94 5 Contracts and Sourcing: Evidence 128 III Internalization 167 6 The Transaction-Cost Approach 169 7 The Property-Rights Approach 192 8 Internalization: Empirical Evidence 217 IV Appendixes 263 Bibliography 307 Index 319

Else. Black Swan. Eisenhardt, K.M. (1989). Agency Theory: An Assessment and Review. The Academy of Management Review, 14(1), 58, 60-61, 69-70. Gibbons, R. (2010). Transaction-cost Economics: Past, Present, and Future? The Scandinavian Journal of Economics, 112(2), 12. Gorynia, M. (1999). Przedsiębiorstwo w nowej ekonomii instytucjonalnej. Ekonomista, 6, 779-780, 783. Hodgson, G.M. (1998). The Approach of Institutional Economics. Journal of Economic Literature, 36, 167. Jensen, M.C., Meckling W.H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and

) Milliardspillet. Kampen mellom TV 2 og NRK om TV-fotballen – sett fra innsiden. [The billion game. The fight between TV2 and NRK about the TV football – as seen from the inside] Oslo: Damm. Williamson, O.E. (1979) ‘Transaction-Cost Economics: The Governance of Contractual Relations’, Journal of Law and Economics , 22, 233-261.

: reducing operational friction in the governance and production of services. Journal of Operations Management , 26 (2), 275-287. Weick, K.E. (1979). The Social Psychology of Organizing (2nd ed.). Reading: Addison-Wesley. Williamson, O.E. (1979). Transaction-Cost Economics: The Governance of Contractual Relations. Journal of Law and Economics , 22 (2), 233-261. Williamson, O.E. (1981). The Economics of Organization: The Transaction Cost Approach. American Journal of Sociology , 87 (3), 548-577. Williamson, O.E. (1985). The Economic Institutions of Capitalism