Markets and Hierarchies

Williamson, O. E. (1975). Markets and Hierarchies: Analysis and Antitrust Implications. The Free Press.

Type

Book

Intellectual base

Review or monograph

Year

1975

Link

https://archive.org/details/marketshierarchi0000will

Cited from

economics_finance, sociology_anthropology

Cited by

3 citations across 3 artifacts.

Each citation links to the sentence it supports in the citing article.

Primes

• Authority
  • By pre-allocating decision rights, authority replaces perpetual case-by-case persuasion with clear rules of who decides what — Williamson (1975) develops this as the central economic rationale for hierarchies, which substitute fiat for repeated market negotiation when transaction costs would otherwise dominate.

    This sourceDevelops transaction-cost economics and the make-vs-buy decision: governance shifts from market to internal hierarchy when market transaction costs exceed internal coordination costs, with hierarchy substituting fiat (pre-allocated decision rights) for repeated market negotiation.

• Internalization
  • It compresses an ongoing external transaction into a one-time structural incorporation.

    This sourceDevelops transaction-cost economics and the make-vs-buy decision: governance shifts from market to internal hierarchy when market transaction costs exceed internal coordination costs, replacing a recurring interface with one-time incorporation — supports the complexity-management claim and the framing of make-vs-buy as a costed boundary-placement choice.

• Transaction Costs
  • Williamson's earlier Markets and Hierarchies (1975,

    This sourceDevelops transaction-cost economics and the make-vs-buy decision: governance shifts from market to internal hierarchy when market transaction costs exceed internal coordination costs, replacing a recurring interface with one-time incorporation — supports the complexity-management claim and the framing of make-vs-buy as a costed boundary-placement choice.

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