Transaction cost theory: past, present and future

The academic article provides an extensive overview of Transaction Cost Theory (TCT), tracing its evolution from its inception to potential future applications. It examines the foundational ideas of three major scholars: Ronald Coase (the past), Oliver Williamson (the present), and Yochai Benkler (the future), detailing their respective contributions to the theory. The author explains that TCT posits that conducting economic transactions involves costs, and different organizational structures, such as markets versus firms, entail different costs, which determines the optimal arrangement. The text highlights how each scholar has built upon or significantly modified TCT, with Coase establishing the concept, Williamson refining its measurable attributes like opportunism, and Benkler modernizing it to include "social production" enabled by the digital revolution. Ultimately, the paper serves as a retrospective and prospective analysis, suggesting that future TCT applications will likely focus more on technology's role and individual-centered transactions.