Firms often make errors in selecting governance forms and the scope of the firm. This is one common reason firms must undergo painful periodic restructuring programs. If only managers could frame these problems more effectively and identify the key factors to make more informed decisions — in short, a primer on Transaction Cost Economics (TCE). Brian Silverman provides just that tool in a sequence of three short videos. This is especially useful in today’s online teaching environment since transaction cost economics readings may not be the most user-friendly. I might add that this overview provides an excellent introduction for PhD students prior to diving into academic readings on the topic. Here is the second of the videos explaining the predictions of transaction cost economics.

Contributed by Brian Silverman