Development and Comments on Firm Theories of Transaction Cost

After Coase put forward the firm theories of transaction cost in 1937, the econoists have developed them from different perspectives. These developments include: the optimum hierarchy of Williamson, the group production and supervision of Alchian and Demesetz, and contractual nature of the firm of Cheung, and the indirect pricing firm theories of New classical Economics. Although the economists of Firm Theories of Transaction Cost explained the formmation and boundary of firm initially, some questions must be explained progressively, for example, the concepts on the transaction cost, the questions on the definition of firm.