Integrating Variable Risk Preferences, Trust, and Transaction Cost Economics

Academy of Management Review, Volume 21, Issue 1, 1996, Pages 73-99.

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Abstract:

Transaction cost economics (TCE) relies on three behavioral assumptions in predicting how firms choose governance structures-bounded rationality. opportunism. and risk neutrality. We explore the implications of the neglected behavioral assumption of risk neutrality. offer am integrative appraisal of the three behavioral assumptions using ...More

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