Endogenous Transaction Cost, Specialization, and Strategic Alliance

• Main Authors: ZHANG, Juyuan, ZHANG, Yi
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2008
• Subjects: Endogenous Transaction Cost; Hold-up; Specialization; Overinvestment; Strategic Alliance; Industrial Organization
• Online Access: https://ink.library.smu.edu.sg/soe_research/1468; https://ink.library.smu.edu.sg/context/soe_research/article/2467/viewcontent/fixed_learning_cost.pdf
• Institution: Singapore Management University

In property rights theory, firm is an organizational response to reduce transaction cost associated with hold-up of using market mechanism. We claim that strategic alliance { without changing firm boundaries or asset ownership { is another type of organizational response. We construct a model to inv...