Economic transactions, opportunistic behavior and protective mechanisms

Carsten Allan Koch

    Research output: Book/ReportReportResearch

    Abstract

    Whenever actors participate in transactions they expose themselves to risks of various kinds. Some of these risks are attributable to events outside the control of the participants and are unavoidable. Others originate in, or are aggrevated by, opportunistic actions undertaken by contract partners and other co-operators. This paper is concerned with the latter type of risk and the protection against it. Six protective mechanisms, which may serve as safeguards against opportunistic behavior, are presented and discussed. Special attention is paid to reputation effects. It is noted that such effects may account for the lack of opportunistic behavior with which networks are often credited. No protective mechanism is, however, effective under all circumstances.
    Original languageEnglish
    Place of PublicationOdense
    PublisherOdense Universitet
    Number of pages30
    Publication statusPublished - 1995
    SeriesSkrifter fra Institut for virksomhedsledelse, Odense universitet
    Number6/1995
    ISSN0909-864X

    Keywords

    • Network
    • Opportunistic behavior
    • Organizational economics
    • Protection
    • Reputation

    Cite this

    Koch, C. A. (1995). Economic transactions, opportunistic behavior and protective mechanisms. Odense Universitet. Skrifter fra Institut for virksomhedsledelse, Odense universitet , No. 6/1995