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Williamson: The economics of organization

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Williamson. 1981. The economics of organization: The transaction cost approach. American Journal of Sociology 87: 548-77.

A somewhat dense analysis of how transaction costs affect organizational decisions. In effect, this is the point: Using a complex structure to govern simple transactions incurs unneeded costs, but using a simple structure to govern a complex transaction invites strain (562). Thus, because there are many types of transactions, there are many types of organizations (568).