Basic Predictions of Transaction Cost Economics


In this video, Professor Brian Silverman at the Rotman School of Management will present the basic predictions generated by Transaction Cost Economics. He will first discuss the Make vs. Buy decision and will then explore other settings, such as corporate diversification, multinational expansion, and alliances.


Teece, David J. (1980). Economies of scope and the scope of the enterprise. Journal of Economic Behavior and Organization 1(3): 223-247.