Abstract
The paper represents the fundamental principles and ideas of the transaction theory of economic institutions, which supposes quantification of the quality of institutions through evaluation of economic transactions. The major works of the founders as well as the practical pathways of implementing the theory are discussed. The paper consolidates the author’s main contributions to the study of companies’ transactions based on their market potential, the technique of institutional atlas design, institutional effects of the staff opportunism decrease, assessment of the transaction costs of hybrid organizations, and the formal representation of the company’s external transaction function.
Highlights
Several Noble Prizes in economics have marked impetuous advance of the institutional theory
The main transaction types of manufacturing enterprises can be differentiated into five types [26]: 1) information search; 2) market analysis; 3) protection of property rights; 4) defence against opportunism; 5) market promotion. It seems a prospective scientific idea in terms of the transaction theory of institutions that a transaction typology is possible on the basis of the typology of company’s economic activities.The typology of transactions lets us turn to economic institutions, which are the established norms of interaction between economic agents and to the evaluation of the transaction sector of economy
Vuuren [11] has claimed that the size of the transaction sector is largely determined by the specifics of economic activity in different countries
Summary
Several Noble Prizes in economics have marked impetuous advance of the institutional theory. R. Coase was awarded the Prize in 1991 for the development of ‘the institutional structure of production’. Maskin for the ‘theory of economic mechanisms’ and, in 2009, to O. The need for the theory assessing economic institutions has become as relevant as ever. The primary aim of the present study is to systematize the scientific principles and ideas, which might consolidate the practical experience and represent the regularities of society development in terms of transactions of economic institutions, in other words, to elaborate the transaction theory of economic institutions. The relationships between scientific principles and scientific ideas are the following. Scientific principles are the base of the theory, whereas scientific ideas represent the possible directions of theory development
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