This book is a study of the multinational corporation from the transaction cost perspective. The firm is a system of administrative relationships based on a nexus of contracts and the strong interdependence of specific assets. The firm substitutes the market mechanism when, in view of resource...

Few textbooks in mathematical economics cover optimal timing problems. Those which cover them do it scantly or in a rather clumsy way, making it hard for students to understand and apply the concept of optimal time in new contexts. Discussing the plentiful illustrations of optimal timing...

Our purpose is to reveal the transaction cost character of the different forms of market failure where transaction costs are defined as the costs of using the market mechanism, what it costs to organize market exchange or overcome the obstacles to an efficient market process. The paper thus...

In highly mathematical courses, it is a truism that students learn by doing, not by reading. Tamara Todorova’s Problems Book to Accompany Mathematics for Economists provides a life line for students seeking an extra leg up in challenging courses. Beginning with college-level mathematics, this...

The modern firm is discussed from the viewpoint of R. Cose’s theory of transaction costs. The issue of management and price mechanism as alternative methods of allocating economic resources is analyzed. The company growth limits are defined and the nature of transaction costs is given,...

Rental rate gives the opportunity cost of a machine, that is, it accounts for the opportunities forgone by using the machine or self-renting it instead of renting it out to someone else. While the traditional approach studies how the rate at which a machine can be rented depends on the market...

The paper explores the quality problem as a major challenge before transitional economies. It uses Akerlof’s model of misrepresented quality in an attempt to study it as the reason for market failure in the new democracies. The determinants of poor quality in the region of Eastern Europe are...

Before and after Coase - The Role of Transaction Costs

This paper studies the transaction-cost economizing effects of authoritarian management in organizations and systems subject to higher transaction costs originating from various sources. We analyze the nature, mechanisms and transaction-cost aspects of the authoritarian management style. We...

This paper supports the view expressed by other authors that Ronald Coase’s ideas are often misrepresented in the academic world. It restates some of Coase’s main findings with special emphasis on their relevance to processes taking place in Eastern Europe. The goal of this paper is to...