Assumption of opportunism undermines proposed solutions in transaction cost economics
The researchers analyzed a key text in transaction cost economics and found that the assumption of opportunism undermines the proposed solution to the problem of economic organization. The plausibility of unified governance as a solution to opportunism in transaction relations depends on temporarily setting aside the assumption of opportunism. This creates a dilemma where actors must be assumed to be both opportunistic and not-opportunistic for the theory to make sense.