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(vertical scope) - Coggle Diagram
vertical scope
TCE (theory of the firm)
economic exchanges
cost of transactions
costs
outsourcing
moral hazard
private information
contracted for which leads to abuse
governments being willing to bail out banks
not measurable
holdup problem
one party gains an upper hand
opportunism
one of the parties has to invest in assets that are specific to the other
exposing your company's core knowledge/techonology/buyer
adverse selection
hierarchical organization
administrative costs
week incentives
principal-agent problem
performance are unobservable
lack of dynamicism
less responsiveness to market or technology trends
comparative organizational analysis
compare relative advantages and disadvantages
using markets, or outsourcing
better adaptation
hierarchies, or doing things inside a firm
better coordination