transaction cost theory

Definition

A theory accounting for the actual cost of outsourcing production of products or services including transaction costs, contracting costs, coordination costs, and search costs. The inclusion of all costs are considered when making a decision and not just the market prices. Essentially this theory illustrates the make versus buy decision for companies.

Use this term in a sentence

Related Videos




http://www.businessdictionary.com/definition/transaction-cost-theory.html

Have a question about this term? Ask for help in the
Community
advertise here

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z