efficiency

44: Transaction Costs and Boundaries of the Firm – Williamson and Malone

We explore an important reading that bridges organization theory with economics -- Oliver E. Williamson’s article, “The Economics of Organization: The Transaction Cost Approach,” where he asserts that the assumption of firms operating on a profit motive has not helped organization theorists understand and explain the behaviors of firms. He thus argued that transactions, not the products or services the firm provides, is a better unit of analysis.

Centralization and the Inefficient Quest for Efficiency

In this sidecast inspired by the debate on the Federalist Papers, Tom talks about the topic of efficiency and its many meanings.