Is Transaction Cost Economics Applicable to Public Governance?
The applicability of Transaction Cost Economics (TCE) to the public sphere is examined with the use of institutional legal theory. First, Oliver E. Williamson's 1985 general theory of private governance structures is analyzed. Following on this, his 1999 attempt at extending the theory to capture governance structures in the public sphere as well, is analyzed with the use of the insights gained from the first stage. Finally, on the basis of the whole two-stage analysis, an attempt is made at solving some fundamental problems concerning the applicability of TCE to public governance.
Keywordscontract governance structure public agency regulation transaction cost
Unable to display preview. Download preview PDF.
- Atiyah, P. S. (1995). An Introduction to the Law of Contract, Oxford: Clarendon Press.Google Scholar
- Coase, R. H. (1937). “The Nature of the Firm.” Economica. New Series. 4(16), 386–405.Google Scholar
- Dixit, A. K. (1996). The Making of Economic Policy: A Transaction-Cost Politics Perspective, Cambridge (Ma.): MIT Press.Google Scholar
- Hodgson, G. M. (1999). Evolution and Institutions. On Evolutionary Economics and the Evolution of Economics, Cheltenham-Northhampton: Edward Elgar.Google Scholar
- Van Kersbergen, K. & van der Waarden, F. (2001). Shifts in Governance: Problems of Legitimacy and Accountability. Paper on the theme ‘Shifts in Governance’ as part of the Strategic-Plan 2002–2005 of the Netherlands Organization for Scientific Research (NWO). The Hague: Social Science Research Foundation NWO.Google Scholar
- MacCormick, N. & Weinberger, O. (1986). An Institutional Theory of Law. New Approaches to Legal Positivism, Dordrecht: D. Reidel Publishing Company.Google Scholar
- Moe, T. (1984). “The New Economics of Organization.” American Journal of Political Science. 28, 739–777.Google Scholar
- Posner, R. A. (1990, 1993). The Problems of Jurisprudence, Cambridge (Ma.)-London: Harvard University Press.Google Scholar
- Ruiter, D. W. P. (1993). Institutional Legal Facts. Legal Powers and their Effects, Dordrecht Kluwer Academic Publishers.Google Scholar
- Ruiter, D. W. P. (2001). Legal Institutions, Dordrecht: Kluwer Academic Publishers.Google Scholar
- Weinberger, O. (1991). Law, Institution and Legal Politics, Dordrecht: Kluwer Academic Publishers.Google Scholar
- Williamson, O. E. (1985). The Economic Institutions of Capitalism, London-New York: The Free Press.Google Scholar
- Williamson, O. E. (1991). “Comparative Economic Organization: The Analysis of Discrete Structural Alternatives.” Administrative Science Quarterly. 36(2), 269–296.Google Scholar
- Williamson, O. E. (1994), “Transaction Cost Economics and Organization Theory.” In N. J. Smelser and R. Swedberg. (eds.), The Handbook of Economic Sociology. Princeton-New York: Princeton University Press.Google Scholar
- Williamson, O. E. (1997). “Transaction Cost Economics and Public Administration.” In P. B. Boorsma, K. Aarts and A. E. Steenge. (eds.), Public Priority Setting: Rules and Costs. Dordrecht: Kluwer Academic Publishers.Google Scholar
- Williamson, O. E. (1999). “Public and Private Bureaucracies: A Transaction Cost Economic Perspective.” The Journal of Law, Economics, & Organization. V15(N1), 306–342.Google Scholar
- Wilson, J. Q. (1989), Bureaucracy. What Government Agencies Do and Why They Do It, New York: Basic Books.Google Scholar
- Zimmermann, R. (1990). The Law of Obligations. Roman Foundations of the Civilian Tradition, Cape Town: Juta & Co.Google Scholar