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A Concept of Two Authors: Commons and Williamson on Transactions

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  • Sebastião Neto Ribeiro Guedes
  • Rodrigo Constantino Jeronimo

Abstract

The idea of transactions in social sciences was conceived by John Rogers Commons in the beginning of the 1920s, representing a mental instrument capable of describing capitalism and its peculiarities. On the other hand, Oliver Williamson’s approach in late 1970s reduced the concept to the mere transfer of goods and services in institutions that are or are not guided by the price system. The aim of this article is to present the characteristics of these two different approaches to the concept of transactions, evidencing the role of epistemological aspects and investigative purposes (referred to relevant research context and problem originated in it) as the causes of its metamorphosis. John Commons’ effort to build up a concept not only capable of transcending the idea of exchange but also of giving a totalising perspective to the interpretation of capitalism is emptied in Williamson’s appropriation of the term. By utilising Commons’ conception of transactions and trying to subsume it to his ‘general theory of transaction costs’, Williamson limits its scope and meaning, adjusting it without producing rupture with the neoclassical economy. This article tries to catch the vicissitudes of this concept found in both authors. JEL: B15, B25, B31

Suggested Citation

  • Sebastião Neto Ribeiro Guedes & Rodrigo Constantino Jeronimo, 2023. "A Concept of Two Authors: Commons and Williamson on Transactions," Journal of Interdisciplinary Economics, , vol. 35(1), pages 61-82, January.
    • Handle: RePEc:sae:jinter:v:35:y:2023:i:1:p:61-82
    DOI: 10.1177/02601079211037482
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    References listed on IDEAS

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    More about this item

    Keywords

    Institutional economics; transactions; John R. Commons; Oliver Williamson;
    All these keywords.

    JEL classification:

    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals

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