Toward Behavioral Transaction Cost Economics: Theoretical Extensions and an Application to the Study of MNC Subsidiary Ownership

George Z. Peng delves into the intricate world of transaction cost economics, offering a fresh perspective that intertwines behavioral insights with economic theory. By adopting a critical realist stance, the author emphasizes the significance of understanding human behavior in the context of economic transactions. This exploration not only sheds light on traditional economic models but also extends them to account for the complexities of decision-making processes in a globalized economy.

The book further applies these theoretical insights to the realm of multinational corporations (MNCs), particularly focusing on subsidiary ownership dynamics. Peng presents a compelling narrative that challenges conventional wisdom, illustrating how behavioral factors influence ownership structures and corporate strategies in an increasingly interconnected world. Through a blend of rigorous analysis and practical application, the work invites scholars and practitioners alike to rethink conventional frameworks, paving the way for a more nuanced understanding of economic interactions across borders.