We consider a single-period portfolio selection problem which consists of minimizing the total transaction cost subject to different types of constraints on feasible portfolios. The transaction cost function is separable, i.e., it is the sum of the transaction cost associated with each trade, but discontinuous. This optimization problem is nonconvex and very hard to solve. We investigate in thi...

explanations (Makino and Neupert, 2000; Taylor, Zou and Osland, 1998; Cleeve, 1997; Padmanabhan and Cho, 1996; Erramilli and Rao, 1993; Hennart, 1991; Gatignon and Anderson, 1988; Anderson and Gatignon, 1986). However, recently scholars such as Brouthers and Brouthers (2000) and Delios and Beamish (1999) have begun extending transaction cost entry mode theory by choices. We found that mode choi...

In this conceptual paper, open innovation is considered from the point of view of collaboration between the Industry and the Academy. However, if considered under the framework of the Resource Based Theory, specifically regarding Transaction Cost, it can be shown that the two parties (Industry and Academy) are in fact compatible. The discussion on Transaction Cost is mainly focused on the aspec...

make or buy decision is one of the main areas of decision making for managers. transaction cost economics (tce), as an influential economic approach to the theory of the firm, tries to put forward a theoretical framework for this important decision. from tce perspective, the greater the asset specificity, the more the behavioral uncertainty and the more the transaction frequency, the more will ...