Market-Hierarchy-Model.png
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Summary
| Description |
English:
The model shows institutions and market as a possible form of organization to coordinate economic transactions. When the external transaction costs are higher than the internal transaction costs, the company will grow. If the internal transaction costs are higher than the external transaction costs the company will be downsized by outsourcing, for example.
Deutsch:
Die Darstellung zeigt ausgehend von der Transaktionskostentheorie die Begründung für die Existenz von Unternehmen.
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