One of the most well-known theories on market functioning according to the firm’s perspective is that of transaction costs analysis (TCA), proposed in its early versions by Coase (1937) and then by Williamson (1975, 1985) who formulated the most relevant statements about this theory. The TCA approach supported the academic literature in explaining the criteria of organizational forms and strategic choices, among which are diversification, vertical integration, internationalization, and various forms of cooperation and interaction among firms. Two key assumptions of human behavior support this theory: bounded rationality and opportunism. Bounded rationality assumes that decision makers have limited cognitive capabilities and a not fully rational behavior. This is due to limited information processing and communication ability (Simon, 1957). These constraints emerge in conditions of uncertainty,for which the context of an economic interaction cannot be specified ex ante and performance cannot be verified ex post (Rindfleisch and Heide, 1997). Opportunism is defined as "self-interest seeking with guile. This includes but is scarcely limited to more blatant forms, such as lying, stealing, and cheating. ... More generally, opportunism refers to the incomplete or distorted disclosure of information, especially to calculated efforts to mislead, distort, disguise, obfuscate, or otherwise confuse" (Williamson, 1985, p. 47). Unfortunately, the TCA literature lacks an understanding of what determines limited rationality and opportunism, and which are the factors that have an influence on these dimensions of human behavior. The papers collected in this issue of The International Journal of Economic Behavior (IJEB) contribute in continuing the construction of the complex mosaic of concepts and tools that is necessary for the study of economic behavior.

Editorial (2013 issue)

MUSSO, FABIO
2013

Abstract

One of the most well-known theories on market functioning according to the firm’s perspective is that of transaction costs analysis (TCA), proposed in its early versions by Coase (1937) and then by Williamson (1975, 1985) who formulated the most relevant statements about this theory. The TCA approach supported the academic literature in explaining the criteria of organizational forms and strategic choices, among which are diversification, vertical integration, internationalization, and various forms of cooperation and interaction among firms. Two key assumptions of human behavior support this theory: bounded rationality and opportunism. Bounded rationality assumes that decision makers have limited cognitive capabilities and a not fully rational behavior. This is due to limited information processing and communication ability (Simon, 1957). These constraints emerge in conditions of uncertainty,for which the context of an economic interaction cannot be specified ex ante and performance cannot be verified ex post (Rindfleisch and Heide, 1997). Opportunism is defined as "self-interest seeking with guile. This includes but is scarcely limited to more blatant forms, such as lying, stealing, and cheating. ... More generally, opportunism refers to the incomplete or distorted disclosure of information, especially to calculated efforts to mislead, distort, disguise, obfuscate, or otherwise confuse" (Williamson, 1985, p. 47). Unfortunately, the TCA literature lacks an understanding of what determines limited rationality and opportunism, and which are the factors that have an influence on these dimensions of human behavior. The papers collected in this issue of The International Journal of Economic Behavior (IJEB) contribute in continuing the construction of the complex mosaic of concepts and tools that is necessary for the study of economic behavior.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11576/2575776
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