Measuring Transaction Costs in Plural Formed Marketing Channels

Measuring Transaction Costs in Plural Formed Marketing Channels

Measuring transaction cost is a key research problem in making transaction cost theory testable and falsifiable. Over time this issue have been described and conceptualized in the literature but have not been empirically tested before. Hence professor Arne Nygaard has developed empirical dimensions of transaction costs. Furthermore, he also presents how these post contract cost dimensions are related to governance and to inter- organizational performance. In this research he also presents multisource- and dyadic data – methods to analyze antecedents and outcome of contract- related transaction costs. Bargaining cost, control cost, maladaption cost and the cost of free riding are all dimensions affected by the governance structure and affect performance. A plural formed franchise system in the oil industry provides a ceteris paribus empirical setting for this investigation.

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