Where do transactions come from?
Subtitle: a network design perspective on the theory of the firm
By: Carliss Y. Baldwin, Kim B. Clark
Edition: Rev.
Series: Working paper / Division of Research, Harvard Business School -- 06-051; Working paper (Harvard Business School. Division of Research) -- 06-051
Publisher: Division of Research, Harvard Business School
Published: 2006
Place of publication: Boston
Language: eng
Number of pages: 52
Description: The goal in this paper is to explain the location of transactions (and contracts) in a larger system of production. We first characterize the system as a network of tasks and transfers. While transfers between agents are necessary and ubiquitous, the mundane transaction costs of standardizing, counting, valuing and paying for what is transferred make it impossible for all transfers to be transactions. We go on to argue that the modular structure of the network determines its pattern of mundane transaction costs, and thus establishes where cost-effective transactions can be located.
Notes: Revision of: Where do transactions come from?: a perspective from engineering design. c2002. (Working paper (Harvard Business School. Division of Research) ; 03-031).

"May 11, 2006"--Added t.p.

Includes bibliographical references.