Texto para discussão 17/2006
The metaphors of transaction cost economics
Huáscar Fialho Pessali*
Abstract
Metaphors are part of our daily lives as they help us understand
the world and economics, as other areas of knowledge, cannot go without
metaphors. Transaction Cost Economics (TCE) is no different to other
intellectual construction and has been built on a set of key metaphors. This
article discusses three of these metaphors: transaction costs as frictions,
human beings as “contractual men,” and natural selection between
mechanisms of governance. It scrutinises their potential to help
Williamson’s theory gain adherence from and be recognised as relevant by
his peers. It discusses some possibilities of how the initial choice or
formulation of key TCE metaphors may mould intellectual exchanges and
direct theoretical developments.
Keywords: transaction cost economics; metaphors; Oliver Williamson; theory of the firm; institutions of economics; institutional economics.
* Departamento de Economia, Universidade Federal do Paraná.
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