Briefly Outline Transaction Cost Economics as It Relates to IT

question 113

Essay

Briefly outline transaction cost economics as it relates to IT outsourcing.

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Definitions:

Social Institutions

Established systems and structures within society that dictate certain patterns of behavior, such as family, religion, education, and government.

Network Theory

A theoretical framework that analyzes social, economic, or natural phenomena in terms of nodes and the connections between them, emphasizing the importance of relationships and interactions.

Rational Choice Theory

An economic principle that assumes individuals always make decisions that provide them with the highest level of personal utility.

Positivism

A philosophical theory stating that certain ("positive") knowledge is based on natural phenomena and their properties and relations as verified by the empirical sciences.