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In developing his Transactional Cost Economics framework, what has Oliver Williamson added to Coase's original work on the nature of the firm? What limitations do you associate with Williamson's framework. In order to reflect upon Oliver Williamson's framework of Transaction Cost Economics (TCE), it is important, if not essential, to consider Ronald Coase's contribution to it. Coase argued that given absence of transaction costs, efficiency could be achieved under any number of 'institutional arrangements.' He says that the choice between each alternative institutional arrangement, including one between market and firm organization, gave birth to comparison of costs of transacting. This essay identifies the limitations of Coase's framework, and illustrates Williamson's construction of it as a somewhat more predictive extension, highlighting its limitations. Coase's claim that given markets, firms should not exist in the absence of inherent market failures related to transaction costs is highly acclaimed but widely criticized. These criticisms range from...

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