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Unformatted text preview: contract since it is unclear on how to attain the final product. If there is no uncertainty then a contract can be formed. When the contract is finalized there is no questioning how the product was produced. Opportunism- This is when one party in a contract has an unequal share of power over the other. The party with more power can influence the other party in order to attain self fulfilment. Small Number- this is when there are few buyers or sellers in a market. You have exhausted all possibilities and have found few businesses to select from a market. Asset Specificity- This is when a business has a unique product. The business could be bound by the supplier since the supplier obtains special knowledge on how to manufacture the product. It would be difficult to change suppliers quickly since the new supplier would have to obtain the already existing knowledge or re-engineer the product....
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- Spring '11
- Economics, Transaction cost, transaction cost economics, Oliver Williamson