Interconnecting distinct electricity markets by adding a new transmission line affects the outcomes in these markets in a complicated way when there is uncertainty in demand or participant behaviour. We use market distribution functions to examine the effects of interconnection using a single...

Interconnecting distinct electricity markets by adding a new transmission line affects the outcomes in these markets in a complicated way when there is uncertainty in demand or participant behaviour. We use market distribution functions to examine the effects of interconnection using a single...

Should you set up your own sales force or should you outsouce it? The standard analysis uses a cost basis to answer this question. It assumes that the direct sales force is largely a fixed cost and that the outsourced sales force is largely a cost that varies with sales. It then calculates the...

Most managers, when confronted with a difficult strategic decision, would like to know what is the prevailing practice in their industry. Prevailing practice interests managers, in part, because it may indicate which decisions are good, even "best." The rationale is "Darwinian economics," which...

This research examines the evolution of cooperative interorganizational relationships and provides an empirical test of four propositions from the DSO (Dwyer et al. 1987) life-cycle theory, and one proposition from the RV (Ring and Van de Ven 1994) theory of relationship development. Using...

A “frontier issue” in international marketing is the appropriate choice of entry mode in foreign markets. The objective of this paper is to offer a transaction cost framework for investigating the entry mode decision. This framework provides 1) a theoretical basis for systematically...

The literature on chief executive officers (CEOs) established that economics and sociological rationales are both essential to understand the level and structure of CEOs' compensation. Our thesis is that internal "transaction costs" or frictions override strictly economic criteria to determine...

Opportunism is a central construct in exchange theory. Economists contend that despite the firm's best efforts to erect governance structures that reduce opportunism and preserve outcomes, there is always some opportunism that remains once the transaction is in place. Despite this, there are few...