Williamson says that market failure problems that result from contracting through vertical integration can be solved through ______, ______ and ______.
A) organizational design/innovation/creative destruction
B) information flows/negotiating costs/incentive alignment
C) managing uncertainty/being boundedly rational/being fast to market
D) none of these

Question

Quizplus · Accepted Answer

Williamson argues that market failure problems resulting from contracting through vertical integration can be addressed through effective management of information flows, negotiating costs, and incentive alignment. These mechanisms can help to minimize the costs associated with contracting and reduce the likelihood of opportunistic behavior by either party. Therefore, choice B is the best answer.

Williamson Says That Market Failure Problems That Result from Contracting