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...

This note studies the influence of a financial transaction tax and transaction costs on the optimal production and hedging strategies of a duopoly. Firms are exposed to demand uncertainty that leads to price risk and can hedge their risk exposure on a forward market. However, the forward...

This paper builds coordination costs, transaction costs, and other aspects of the theory of the firm into a production chain model with an infinite number of ex ante identical producers. The equilibrium determines prices, allocations of productive tasks across firms, firm sizes, and the number...