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....

We examine the effect of relationship-specific investment on contract complexity, which has broad implications because complex contracts and vertical integration have similar causal origins. It is usually assumed that transaction cost economics (TCE) implies that relationship-specific investment...

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...

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...

How do firms respond to new institutions? This question is addressed by analyzing the determinants of firms' strategies on transactional governance, using data from a Romanian survey. Strategy variables are regressed on factors that should determine behavior according to agency and...