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Incentive intensity, forbearance law and the governance of transactions

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  • Tian Zhu

Abstract

This paper uses a simple make-or-buy model to summarize and illustrate some of the distinguishing aspects of Williamson's transaction cost theory. It is shown that each mode of governance is associated with a different degree of incentive intensity, which in turn is attributable to the difference in court access and in the control of accounts. Copyright 2004, Oxford University Press.

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  • Tian Zhu, 2004. "Incentive intensity, forbearance law and the governance of transactions," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 13(6), pages 855-866, December.
    • Handle: RePEc:oup:indcch:v:13:y:2004:i:6:p:855-866
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    Cited by:

    1. Oliver E. Williamson, 2005. "The Economics of Governance," American Economic Review, American Economic Association, vol. 95(2), pages 1-18, May.

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