Transactions are doing nearly every time the business in question is open, and for some also when it is closed. Transactions are the economic foundations for corporations worldwide!
Professor Oliver Williamson is a clever man, and he has the Nobel Prize in Economics. Hence, he has done some important, some pioneering and some substantial work with pleasure and happiness for everyone. His research is much around transactions. And they are happening within firms between accounts in the accounting system, and they are also taking place between corporations with accounts in different firms. Many activities imply many transactions, and few activities mean few transactions.
Oliver Williamson has many opinions, and his research is much on investments in companies with asset value. These investments are asset specific, and they cannot necessarily be used in other places. This is firms with structures and contracts. We must use machines to distinct things and on distinct areas. Together with bounded rationality on individuals, there are borders within our heads and between our heads, and we cannot be all places simultaneously. We have bottlenecks in our heads, and accordingly few of us have free and new information from time to time. We must structure our reality in relation to what we know, and to what we have capacity to.
Humans have either competence or they have not. But we can work although we have not many knowledges and due to our intelligence level. But employers and other people in organizations cannot demand more things of people rather than is possible and rather that can be done from a human body. We have our glances, opinions and personalities, and we cannot change things if there are no reasons for doing it. Changes should happen when changes are necessary!
Transactions can be done due to the investments, the machines and the equipments that are available within firms. We have transactions due to inputs and outputs. And the values coming out from corporations should be higher when what has been paid for the inputs and necessary resources being inside companies. Prosperity, wealth and growth should also be important and valuable within firms, between firms and for all firms in total.
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Sverre Larsen
Kristiansand, Norway
Photoes from CCC (Content Creator Channel), by Ulla Jensen