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Introduction to Economics
C/E/546. Transaction cost economics and vertical boundaries of a firm
- WORDS:
- 2000
- DATE:
- 2010
- PRICE:
- 29.99 GBP
The paper examines the features of transaction cost economics (TCE) explaining its role in companies’ vertical integration, considering the importance of “unchanging contextual factors”, etc. It is argued whether the product or service should be performed by the in-house department, by using an independent firm from the open market or by forming strategic alliances. A critical role of coordination in a vertical chain is emphasised.
KEYWORDS: Transaction cost economics, TCE, vertical integration,
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