TCE Transaction cost economics

4 important questions on TCE Transaction cost economics

TCE def problem

question between outsourcing or internal development,
make or buy
vertical intergration or buyer-supplier relationship

Main contribution of TCE: main research question

How to determine the relative cost of internal production vs. market-based transaction ?

TCE transaction costs are driven by (3)

asset specifity (equipment, human resource, location)
uncertainty 
frequency

higher these levels, higher costs, more efficient in-house production
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

Tce pro for internal production

costs close to optimal price
long term price
no costly last minute surprise
coordination via authority

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo