The first chapter of this dissertation considers the complexity of contracts to be determined bytransacting partners based on their exposure to the opportunistic behavior of theother. A transaction cost economics model generates the hypothesis that buyer andseller relationship-specific...

We offer a new perspective on the effect of relationship-specific investment on contract complexity, which has broad implications because complex contracts and vertical integration are substitutes. A simple model using transaction cost economics (TCE) predicts that buyer and seller...

Randomized response methods, which were designed to elicit candid answers to sensitive questions, have not succeeded in eliminating reticence in survey responses. We implement a methodology that effectively stands the randomized response technique on its head, using it to identify reticent...

How quickly do firms respond to new institutions? Romanian survey data permits investigation of this question, using variables summarizing firms' strategies on transactional governance. These variables are regressed on the factors that should determine efficient behavior according to standard...

The paper proposes a methodology to obtain evidence on the relative importance of different mechanisms for supporting agreements. A survey question posed to company directors summarizes key aspects of mechanisms and asks for judgments on use. In contrast to existing approaches, the data covers...

A methodology is presented for transaction-cost measurement using reports from businesses. In Romania, transaction costs related to buying and selling are more than 20% of value added. The estimates correlate significantly with variables suggested by theory, indicating validity.

Institutional reform is much emphasized in transition countries, but the process of constructing workable institutions is not well understood. One element of this process that has often been neglected is the generation of empirical information that can aid in the process of institutional design....