Surveying the Transaction Cost Foundations of New Institutional Economics: A Critical Inquiry

Meramveliotakis, Giorgos; Milonakis, Dimitris

doi:10.2753/jei0021-3624440410

Cited by 15 publications

(6 citation statements)

References 37 publications

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“…Having shown the explanatory inadequacy of the transaction cost rationale for the emergence of the firm elsewhere (Meramveliotakis & Milonakis, 2010;Meramveliotakis 2018), I now turn to criticise a decisive part of Williamson"s analysis, that the evolution of the hierarchical organisational form is justified on the grounds of efficiency, i.e. the minimisation of transaction costs.…”

Section: Efficiency Vs Powermentioning

confidence: 99%

“…Thus, granted the transaction cost minimisation principle, the very existence of the firm implies that the latter is a more efficient contractual form than the market arrangement. Specifically, Coase (1937) was the first among new institutionalists who argues that the main function of the firm is to minimise transaction costs by replacing market transactions with the hierarchical organisation of work (Meramveliotakis & Milonakis, 2010). Williamson further develops Coase"s argument by describing the scope of conditions under which a transaction would be more likely to take place within a firm than in the market.…”

Section: Introductionmentioning

confidence: 99%

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Williamson's Theory of the Firm: Efficiency vs. Power

Meramveliotakis¹

2019

IJBSS

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The purpose of this paper is to appraise the analytical usefulness of Williamson's theory of the firm by investigating the explanatory capacity of transaction cost concept. Particularly, the aim is to criticize Williamson's main tenet that the emergence of the hierarchical form of capitalist production system can be analysed in terms of efficiency considerations. Contrary to Williamson's rationale, I conclude that the concept of power seems, in contrast to Williamson's adherence to the efficiency principle, to be a more effective analytical tool in explaining the establishment of the factory system.

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Section: Efficiency Vs Powermentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Williamson's Theory of the Firm: Efficiency vs. Power

Meramveliotakis¹

2019

IJBSS

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“…This affects market instruments such as property rights, information and prices [16] which are in turn also determined by a combination of proposed market structure and the underlying industry characteristics. The following key fea-tures of the ESI are noted (Alves de Santana & da Silva Leite n.d.), [21,22,[40][41][42][43][44][45]. Firstly, Economies of scale exist in the 3 segments of production, transmission and distribution.…”

Section: The Electricity Service Industry (Esi)mentioning

confidence: 99%

The Effects of Transaction Costs on Investor Sentiment: Evidence from the Nigerian Electricity Service Industry

Ojuri¹

2019

CERJ

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Privatisation of the Nigerian Electricity Service Industry represents a bold first step on a multi-dimensional journey to social and economic development. Significant challenges remain to be overcome. This paper examines the reforms through the lens of New Institutional Economics in order to determine how weak institutions have so far confounded seasoned local investors and international advisors, by looking for the presence of excessive transaction costs. The reform environment is based on Williamsons 4 levels of social analysis and subjected to evaluation based on four areas deemed critical for reform success, namely property rights, market structure, conflict resolution mechanisms and policy implementation capabilities. The study is restricted to investors in electricity distribution companies, and the presence of high transaction costs used as proxy for institutions in need of further improvement. The study finds that providing quality asset performance data and changing a culture that tacitly accept electricity theft and late bill payment, will reduce the transaction costs associated with defining and protecting Investors property rights. However, the regulatory environment must mature to enjoy the confidence of government, consumers and investors, who continue to remain optimistic.

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“…Elsewhere we have tried to lay bare the vague and ill-defined nature of the concept of transaction costs (see Meramveliotakis and Milonakis, 2010). For Coase (1937, 38-9;1960, 114) transaction costs explicitly encompass all of the ex ante and ex post costs of accomplishing a contract.…”

Section: An "Immanent" Critique Of Coase's Theoremmentioning

confidence: 99%

Coasean Theory of Property Rights and Law Revisited: A Critical Inquiry

Meramveliotakis¹,

Milonakis

2018

Science & Society

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Ronald Coase's famous Theorem states that externalities -third-party effects of transactions that undermine the supposed optimality of competitive equilibrium -do not need to be corrected by active government policy, as in the classical presentation by A. C. Pigou, if there are complete markets in property rights. This Theorem, however, is inherently flawed, as revealed by "internal" or "immanent" critique of its assumptions. It thus fails, even on its own terms. Beyond this, however, a more radical critique, which foregrounds issues of social structure, social relations, power and conflict, forms the basis for a comprehensive analysis of (capitalist) property rights. This radical analysis of the Coase Theorem and the debate spawned by it has implications for the entire field of "law and economics" studies, and for its central notion that legal doctrine can be based on any set of pure efficiency criteria.

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Surveying the Transaction Cost Foundations of New Institutional Economics: A Critical Inquiry

Cited by 15 publications

References 37 publications

Williamson's Theory of the Firm: Efficiency vs. Power

Williamson's Theory of the Firm: Efficiency vs. Power

The Effects of Transaction Costs on Investor Sentiment: Evidence from the Nigerian Electricity Service Industry

Coasean Theory of Property Rights and Law Revisited: A Critical Inquiry

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