This paper asserts that economists of the mid twentieth century developed two methods of analyzing institutions. Austrian and Coasean economists developed complementary approaches to institutional analysis. Coase developed a research program of Comparative Institutional Analysis, whereby economists compare alternative institutions according to their most similar features. Ludwig von Mises and F...

This paper attempts to examine the effect of a currency devaluation on domestic output by incorporating the Coase (1937) assertion into a standard open economy model. Our results show that there will be multiple equilibria in the labor market, i.e. low or high employment equilibrium, because of transaction cost externalities. If the labor market is in the high-employment equilibrium, a currency...

Analyzing the “institutional structure of production” as proposed by Coase requires a dynamic analysis of the business system. We focus on the evolution of vertical scope, and propose a framework where capability differences interact with changing transaction costs. Such aggregate forces shape the choice context of individual firms. Specifically, disintegration tends to happen when firms differ...

Although the theory of transaction costs has long been fruitfully used in analysis economy, some its aspects still have an ambiguous understanding among researchers. The purpose article is to analyze such alternative interpretations. It shown that include mainly accounting components, and cases also subjective estimates opportunity costs. Based on literature, erroneous interpretation as unprodu...

A durable good is a long-lasting good that can be consumed repeatedly over time, and a duropolist is a monopolist in the market of a durable good. Theoretically, less is known about durable goods than their more well-studied counterparts, consumable and perishable goods. It was quite startling, therefore, when Ronald Coase (1972) conjectured that a duropolist has no monopoly power at all! Speci...