The theory of transaction cost analysis (TCA) states that when substantial transaction-specific assets are necessary to sell a manufacturer's product, the costs of using and administering the independent agents are likely to be lower than the costs of hiring and managing a sales force.

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The theory of transaction cost analysis (TCA) suggests that when substantial transaction-specific assets are necessary, the costs of using and administering independent agents are likely to be higher, not lower, than the costs of hiring and managing a sales force.

The Theory of Transaction Cost Analysis (TCA) States That When