By William D. Nelson
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Extra resources for Advances in Business & Management: Volume 2 (Advances in Business and Management)
As a result, economies of scale in production can be better exploited. It promotes global specialization and induces a greater product variety, and hence it results in higher real wages. Moreover, such a reduction of transaction costs causes migration to the cities, which leads to a larger population in urban areas. This phenomenon is especially apparent in developing countries. But also in the industrial world, this migration to the city has a self-reinforcing effect which creates a highly developed urban center with a periphery lagging behind in development.
Trust and Governance, New York: Russel Sage Foundation, pp. 269-294. H. de, 1994, Meting van transactiekosten in de Nederlandse economie, Maandschrift Economie, 58, pp.. 166-177. , 1966, The Merchant Bankers, New York: Bedminster Press. , 1975, Markets and Hierarchies: Analysis and Antitrust Implications, New York: Free Press. , 1979, Transaction cost economics: the governance of contractual relations, Journal of Law and Economics, 22, pp. 233-261. E. ,1985, The Economic Institutions of Capitalism, New York: Free Press.
This type of trust is closely related to the concepts of social trust, moral trust, personal or blind trust (Williamson, 1993), socially-oriented trust (Lyons and Mehta, 1997), resilient trust (Lindenberg, 2000), broad or altruistic trust (Nooteboom, 2002), generalised trust (Putnam, 1993) and social capital (Fukuyama, 1995). Both at the individual level and at the institutional level, there are a number of different mechanisms that generate informal trust. At the individual level, the way in which people deal with uncertainty varies from person to person.
Advances in Business & Management: Volume 2 (Advances in Business and Management) by William D. Nelson