The Economic Intstitutions of Capitalism

Authors: Oliver E. Williamson

Key Ideas

1. The book explores the role of economic institutions in shaping capitalist economies. It argues that institutions are a key determinant of economic performance and that different types of institutions lead to different outcomes.

2. The author introduces the concept of transaction costs, which are the costs incurred in the process of exchanging goods and services. He argues that transaction costs are a central factor in understanding the design and functioning of economic institutions.

3. Williamson distinguishes between the governance of exchange and the governance of relationships. Exchan....
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Quiz

1. What is the role of economic institutions in shaping capitalist economies?

They are a key determinant of economic performance.

They have no impact on economic outcomes.

They are only relevant for non-capitalist economies.

Their role is purely symbolic.

2. What are transaction costs?

The costs incurred in the process of exchanging goods and services.

The fees charged by banks for financial transactions.

The costs of producing goods and services.

The costs of advertising and marketing.

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