Problems in evaluating performance according to the terms of contracted outcomes are called ______ by TCE.
A) technological uncertainty
B) volume uncertainty
C) behavioural uncertainty
D) radical uncertainty

Question

Quizplus · Accepted Answer

The problems in evaluating performance according to the terms of contracted outcomes are related to the uncertainty of the behavior of the contracting parties, which is behavioral uncertainty according to Transaction Cost Economics (TCE). Technological uncertainty refers to the uncertainty of technological changes, while volume uncertainty relates to the variability of the demand for a product or service, and radical uncertainty refers to unpredictable and unknown events that can affect the outcome of a contract.

Problems in Evaluating Performance According to the Terms of Contracted