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of an organization is to minimize the

costs of exchanging resources in the

environment and the costs of managing

exchanges inside the organization.

Transaction costs are defined as the

costs of negotiating, monitoring, and

governing exchanges between people

Transaction costs result from a combination

of human and environmental factors

Transaction costs result from a combination

of human and environmental factors:

Opportunism and small numbers

Risk and specific assets

Specific assets are investments that

create value in one relationship, but

have no value in another relationship...

of an organization is to minimize the

costs of exchanging resources in the

environment and the costs of managing

exchanges inside the organization.

Transaction costs are defined as the

costs of negotiating, monitoring, and

governing exchanges between people

Transaction costs result from a combination

of human and environmental factors

Transaction costs result from a combination

of human and environmental factors:

Opportunism and small numbers

Risk and specific assets

Specific assets are investments that

create value in one relationship, but

have no value in another relationship...

General points of the essay

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