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CS-vertical 2, 其他啦, CS-vertical 2 - Coggle Diagram
CS-vertical 2
1) transaction cost economic/theory of the firm
can be applied to vertical integration and
horizontal scope
Depend on the exact way in which outsourcing or vertical integration is done,
there may be some overlaps in these costs
.
deals with both the cost of transactions or economic exchanges
transaction cost
derive from
Adverse selection
hold up problem
Moral hazard
associate with
economic change, negotiating, monitoring, enforcing contracts
administrative costs
derive from
weak incentive
lack of dynamism
Principal-agent problem
associate with
hierarchy, bureaucracy, weak incentive, sclerotic
Oliver Williamson
2) two questions that are commingled when people think about vertical integration
what's the objective
the way to achieve objective
vertical integration(Making it)
compare these relative advantages and disadvantages,
and decide which is better for firm
the market (Buying it)
what organization form best achieve the objective
the overall takeaway
align the attributes of the
transaction
其他啦
7) question about vertical integration
what is the objective of integration
What market power or efficiencies
or control or coordination
is being sought
8) achieve objective by making or buying it
compare these relative advantages and disadvantages
and decide which is better for us
Using markets or outsourcing provides better adaptation.
hierarchies or doing things inside a firm provides better coordination.
6) organizational analysis
CS-vertical 2
1) transaction cost economic (TCE)
can be applied to vertical integration and
horizontal scope
Depend on the exact way in which outsourcing or vertical integration is done,
there may be some overlaps in these costs
.
Oliver Williamson
deals with both the cost of transactions or economic exchanges
transaction cost
source of costs
Adverse selection
Moral hazard
hold up problem
associate with
economic change, negotiating, monitoring, enforcing contracts
administrative costs
associate with
hierarchy, bureaucracy, weak incentive, sclerotic
source of costs
weak incentive
Principal-agent problem
lack of dynamism
2) two questions that are commingled when people think about vertical integration
what's the objective
the way to achieve objective
vertical integration(Making it)
compare these relative advantages and disadvantages,
and decide which is better for firm
the market (Buying it)
what organization form best achieve the objective
the overall takeaway
align the attributes of the
transaction
