Internal Production versus External Exchange - A Proposal for an Empirical Test of the Transaction Cost Model

摘要

In this paper a theoretical model is proposed, that allows investigation of why certain organizations manufacture goods internally, while other organizations seek to get supply from other companies. The transaction cost model elaborated here, explains how the characteristics of the production or exchange requirements affect this choice. A number of hypotheses are derived out of this model and an approach to empirically test these hypotheses is proposed and elaborated. (Author)