Technical Tools:

Economic Governance Made Intelligible

Jan 10, 2014 — Neil Boyle

Economic governance was made intelligible when Williamson postulated (1975) that markets and firms are distinct governance structures of transactions where governance costs vary with the asset specificity of the exchange asset. The asset specificity of transaction-specific assets carries critical information concerning the incentives of the asset owners. It gives rise ...

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Vertical Integration as Paradigm: A graphical representation of TCE

Technical Notes

May 25, 2010 — Neil Boyle

VERTICAL INTEGRATION AS PARADIGM - A graphical representation of TCE 5-25-2010 One of many amazing accomplishments of Professor Williamson and to which we benefit from today was his extraction in reduced mathematical form (1996. pp. 106-111) of the basic structure of economic exchange.  Notwithstanding reduced form mathematics, we can generate new ...

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Negotiating Deals to Resist Unraveling

Technical Notes

Nov 20, 2009 — Neil Boyle

PPP infrastructure contracts are notoriously unstable; projected break even supply prices are frequently greater than contracted prices. The disparity is due to the unrelieved contract hazards that were glossed over during negotiations. When unrelieved hazards arise, specialized assets forego safeguards and end up exposed.  Unstable contracts are apt to revert to a simpler ...

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