ABSTRACT
In this chapter I examine newly emerging Russian entrepreneurship from the standpoint of new institutionalist theory, according to which enterprise behavior is constrained and enabled by formal and informal institutions (Williamson 1985; North 1992). The operations of enterprises inevitably lead to positive (nonzero) transaction costs, which are distinct from the costs of production. Transaction costs include costs associated with:
1. Acquisition of property rights and access to resources 2. Evaluation of resources and specification of property rights 3. Preparation of contracts and contract enforcement 4. Protection of property rights 5. Collection of data and advertising
Main Assumptions
There are several widely shared assumptions regarding the role of transaction costs in entrepreneurial behavior and their specific character in postcommunist societies.
