Finance and Credit
 

Abstracting and Indexing

РИНЦ
Referativny Zhurnal VINITI RAS
Worldcat
LCCN Permalink
Google Scholar

Online available

EBSCOhost
Eastview
Elibrary
Biblioclub

Archiving

Cyberleninka (12 month OA embargo)

A view of business incorporation and development: The transaction approach through agent-based modeling

Vol. 26, Iss. 2, FEBRUARY 2020

PDF  Article PDF Version

Received: 10 December 2019

Received in revised form: 24 December 2019

Accepted: 16 January 2020

Available online: 28 February 2020

Subject Heading: BUSINESS VALUE

JEL Classification: D21, D92, L22

Pages: 442–455

https://doi.org/10.24891/fc.26.2.442

Zadadaev S.A. Financial University under Government of Russian Federation, Moscow, Russian Federation
zadadaev@mail.ru

https://orcid.org/0000-0003-1329-4012

Skalkin V.V. Financial University under Government of Russian Federation, Moscow, Russian Federation
vskalkin@fa.ru

https://orcid.org/0000-0002-3994-8574

Velikorossov V.V. Plekhanov Russian Economic University (PRUE), Moscow, Russian Federation
corp.innovation@rea.ru

https://orcid.org/0000-0001-5845-4820

Anikanov E.I. Financial University under Government of Russian Federation, Moscow, Russian Federation
anikanov_economy@mail.ru

https://orcid.org/0000-0003-0798-5319

Subject The article deals with reasons and the nature of business incorporation and development, as the neoclassical approach to studying economic processes becomes more popular.
Objectives The study evaluates the validation of business incorporation theories using the apparatus of the institutional economic and the transaction approach. The article aims to check the verification of theoretical concepts concerning reasons and the nature of business incorporation and development through the modern method of agent-based modeling.
Methods We apply methods of logic research, economic analysis and synthesis through the creative systems approach, agent-based modeling. Research is novel as it substantiates that additional specialization has an impact on business incorporation and development.
Results We understood the substance of the transaction approach in the economy and unfolded theoretical concepts concerning the nature of business incorporation and development. We conducted the comparative analysis by dividing them into the R. Coase’s theory of the firm and preceding concepts of business nature. We tested and built the agent-based model in accordance with key aspects of the above theoretical concepts. The article presents results of modeling and provides recommendation for higher efficiency and motivation for business development.
Conclusions and Relevance The theoretical views of both theories of the firm and the outcome of agent-based modeling prove that transaction costs lead to business incorporation, which verified the theory of R. Coase concerning the integration into the firm.

Keywords: transaction costs, agent-based modeling, institutional economy, firm, market economy

References:

  1. Coase R.H. The Nature of the Firm: Origin. Journal of Law, Economics & Organization, 1988, vol. 4, no. 1, pp. 3–17.
  2. Sukharev O.S. [New Institutionalism: Traps, Transaction Costs, Coase Theorem and Time]. TERRA ECONOMICUS, 2012, vol. 10, no. 3, pp. 39–57. URL: Link (In Russ.)
  3. Velikorossov V.V., Filin S.A. [Issues of the trade-off between S&T progress and the development of society and humanity]. Filosofiya khozyaistva = Philosophy of Economy, 2019, no. 3, pp. 221–236. (In Russ.)
  4. Coase R.H. Adam Smith's View of Man. Journal of Law and Economics, 1976, vol. 19, no. 3, pp. 529–546.
  5. Skalkin V.V., Sidorova S.A. Osnovy teorii rynka: metafizika, epistemologiya, etika: monografiya [Principles of the market theory: Metaphysics, epistemology, ethics: a monograph]. Moscow, Prometei Publ., 2019, 154 p.
  6. Durkheim E. The Division of Labor in Society. New York, The Free Press, 1933.
  7. Smith A. An Inquiry into the Nature and Causes of the Wealth of Nations. Chicago, IL, University of Chicago Press, 1976.
  8. Robinson E.A.G. The Structure of Competitive Industry. London, Nisbet, 1931.
  9. Stigler G.J. The Economics of Information. Journal of Political Economy, 1961, vol. 69, no. 3, pp. 213–225.
  10. Coase R.H. The Problem of Social Cost. Journal of Law and Economics, 1960, vol. 3, no. 1, pp. 1–44.
  11. Caton J. Entrepreneurship, Search Costs, and Ecological Rationality in an Agent-Based Economy. The Review of Austrian Economics, 2017, vol. 30, pp. 107–130. URL: Link
  12. Demsetz H. R.H. Coase and the Neoclassical Model of the Economic System. Journal of Law and Economics, 2011, vol. 54, no. S4, pp. S7–S13. URL: Link
  13. Coase R.H. The Nature of the Firm. Economica, 1937, vol. 4, iss. 16, pp. 386–405. URL: Link
  14. Filin S.A., Malakhova O.V. [Organizations providing information and knowledge depending on level of their innovative development]. Regional'naya ekonomika: teoriya i praktika = Regional Economics: Theory and Practice, 2012, no. 39, pp. 2–14. URL: Link (In Russ.)
  15. Barney J. Firm Resources and Sustained Competitive Advantage. Journal of Management, 1991, vol. 17, iss. 1, pp. 99–120. URL: Link
  16. Lachmann L.M. Capital and Its Structure. New York University Press, 1981, 130 p.
  17. Klein B. Asset Specificity and Holdups. In: Klein P.G., Sykuta M.E. (eds) The Elgar Companion to Transaction Cost Economics. Aldershot, UK, Edward Elgar, 2010, pp. 120–126. URL: Link
  18. Williamson O.E. Opportunism and Its Critics. Managerial and Decision Economics, 1993, vol. 14, iss. 2, pp. 97–107. URL: Link
  19. Küchle G., Sarasvathy S.D., Grichnik D., Menon A. Towards a Dynamic Approach to Entrepreneurship: A Simulation to Measure Effects of Learning in Entrepreneurial Decision Making. Lally-Darden-Humboldt Young Entrepreneurship Scholars' Retreat. Berlin, Germany, 2006.
  20. Miller K.D., Fabian F., Lin S.-J. Strategies for Online Communities. Strategic Management Journal, 2009, vol. 30, iss. 3, pp. 305–322. URL: Link
  21. Provance M., Carayannis E.G. Agent-Based Simulation of New Venture Social and Institutional Embeddedness in Regional Sustainability of Entrepreneurship. SSRN Electronic Journal, 2011. Available at SSRN: Link
  22. Gilbert N., Troitzsch K.G. Simulation for the Social Scientist. Buckingham, Open University Press, 2005, 312 p.

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 26, Iss. 3
March 2020

Archive