Research Note: An Analysis of Specificity in Transaction Cost Economics

Abstract

The transaction specificity of assets yields dependence, and hence transaction costs in case of opportunism and bounded rationality. However, this dependence need not be symmetric between buyer and supplier, and there may be dependence without transaction specific assets. There are many forms of speci ficity, yielding different patterns of more or less symmetric dependence. These different forms of specificity are analyzed in terms of a formal, generalized rela tion of specificity. The implications for dependence are discussed.