Oliver E. Williamson

Last updated
Oliver E. Williamson
Nobel Prize 2009-Press Conference KVA-42.jpg
Williamson in 2009
Born
Oliver Eaton Williamson

(1932-09-27)September 27, 1932
DiedMay 21, 2020(2020-05-21) (aged 87)
Nationality United States
Institution University of California, Berkeley
Yale University
University of Pennsylvania
Field Microeconomics
School or
tradition
New Institutional Economics
Alma mater Carnegie Mellon, (Ph.D. 1963)
Stanford, (MBA 1960)
MIT, (B.Sc 1955)
Influences Kenneth Arrow
Chester Barnard
Ronald Coase
Richard Cyert
Friedrich Hayek
Ian Roderick Macneil
Herbert A. Simon
John R. Commons
Awards John von Neumann Award (1999) Nobel Memorial Prize in Economic Sciences (2009)
Information at IDEAS / RePEc

Oliver Eaton Williamson (September 27, 1932 – May 21, 2020) was an American economist, a professor at the University of California, Berkeley, and recipient of the 2009 Nobel Memorial Prize in Economic Sciences, which he shared with Elinor Ostrom. [1]

Contents

His contributions to transaction cost economics and the theory of the firm are influential in the social sciences. [2] [3] [4]

Life and career

Williamson was born in Superior, Wisconsin, on 27 September 1932. [4] He was the son of Sara Lucille (Dunn) and Scott Williamson, both of whom were high school teachers. [4]

Williamson attended Central High School in Superior. [5] He received his B.S. in management from the MIT Sloan School of Management in 1955. After graduating, he worked as a project engineer for General Electric, as well as the Central Intelligence Agency. [4]

He received an MBA from Stanford University in 1960, and his Ph.D. from Carnegie Mellon University in 1963. A student of Ronald Coase, Herbert A. Simon and Richard Cyert, he specialized in transaction cost economics.

From 1963 to 1965 he was an Assistant Professor of Economics at the University of California, Berkeley. From 1965 to 1983 he was a professor at the University of Pennsylvania and from 1983 to 1988, Gordon B. Tweedy Professor of Economics of Law and Organization at Yale University. While at Yale, Williamson was a founder of The Journal of Law, Economics, & Organization . He held professorships in business administration, economics, and law at the University of California, Berkeley since 1988 and was the Edgar F. Kaiser Professor Emeritus at the Haas School of Business. [6] As a Fulbright Distinguished Chair, in 1999 he taught Economics at the University of Siena.

Found to be one of the most cited authors in the social sciences, [7] in 2009, he was awarded the Nobel Memorial Prize in Economics for "his analysis of economic governance, especially the boundaries of the firm", [8] sharing it with Elinor Ostrom. Williamson died on May 21, 2020 in Berkeley, California. [9] [10]

Theory

By drawing attention at a high theoretical level to equivalences and differences between market and non-market decision-making, management and service provision, Williamson was influential in the 1980s and 1990s debates on the boundaries between the public and private sectors.

His focus on the costs of transactions led Williamson to distinguish between repeated case-by-case bargaining on the one hand and relationship-specific contracts on the other. For example, the repeated purchasing of coal from a spot market to meet the daily or weekly needs of an electric utility would represent case-by-case bargaining. But over time, the utility is likely to form ongoing relationships with a specific supplier, and the economics of the relationship-specific dealings will be importantly different, he argued.

Other economists have tested Williamson's transaction-cost theories in empirical contexts. One important example is a paper by Paul L. Joskow, "Contract Duration and Relationship-Specific Investments: Empirical Evidence from Coal Markets", in American Economic Review , March 1987. The incomplete contracts approach to the theory of the firm and corporate finance is partly based on the work of Williamson and Coase. [11]

Williamson was credited with the development of the term "information impactedness", which applies in situations in which it is difficult to ascertain the costs to information. As he explained in Markets and Hierarchies, it exists "mainly because of uncertainty and opportunism, though bounded rationality is involved as well. It exists when true underlying circumstances relevant to the transaction, or related set of transactions, are known to one or more parties but cannot be costlessly discerned by or displayed for others".

Nobel Memorial Prize in Economic Sciences

Williamson's pipe holder on display at the Nobel Prize Museum Oliver Williamson's pipe holder at the Nobel Museum (51953).jpg
Williamson's pipe holder on display at the Nobel Prize Museum

In 2009, the Royal Swedish Academy of Sciences cited Williamson and Elinor Ostrom to share the 10-million Swedish kronor (£910,000; $1.44 million) prize "for his analysis of economic governance, especially the boundaries of the firm". [1] Williamson, in the BBC's paraphrase of the academy's reasoning, "developed a theory where business firms served as structures for conflict resolution". [12]

Personal life

He met his wife Dolores Celini in 1957, while they both lived in Washington, D.C. [4] They had five children. [4]

Awards and fellowships

Selected papers

Books

See also

Related Research Articles

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References

  1. 1 2 Oliver E. Williamson on Nobelprize.org OOjs UI icon edit-ltr-progressive.svg , accessed 11 October 2020
  2. Mahoney, Joseph T.; Nickerson, Jackson (2021). "Oliver Williamson: a Hero's journey on the merits". Journal of Institutional Economics: 1–13. doi:10.1017/S1744137421000151. ISSN   1744-1374. S2CID   233655198.
  3. Argyres, Nicholas; Zenger, Todd (2021). "Oliver Williamson and the strategic theory of the firm". Journal of Institutional Economics: 1–9. doi:10.1017/S1744137421000539. ISSN   1744-1374.
  4. 1 2 3 4 5 6 Sent, Esther-Mirjam; Kroese, Annelie L. J. (2021). "Commemorating Oliver Williamson, a founding father of transaction cost economics". Journal of Institutional Economics: 1–13. doi: 10.1017/S1744137421000606 . ISSN   1744-1374.
  5. "Five Individuals, 1952 Cathedral Football Team Among 2010 HOF Inductees". Superior Telegram. February 11, 2010.
  6. "Curriculum Vitae of Oliver E. Williamson" (PDF). University of California, Berkeley. Archived from the original (PDF) on 2015-06-11. Retrieved 2009-10-17.
  7. Pessali, Huascar F. (2006). "The rhetoric of Oliver Williamson's transaction cost economics". Journal of Institutional Economics. 2 (1): 45–65. doi:10.1017/S1744137405000238. ISSN   1744-1382. S2CID   59432864.
  8. Sveriges Riksbank's Prize in Economic Sciences in Memory of Alfred Nobel 2009. Sveriges Riksbank. 12 October 2009. Archived from the original on 17 October 2009. Retrieved 2009-10-12..
  9. "Nobel laureate Oliver Williamson, pioneer of organizational economics, dies at 87". 23 May 2020.
  10. "The Passing of Oliver Williamson | SIOE". www.sioe.org. Retrieved 2020-05-23.
  11. Hart, Oliver, (1995), Firms, Contracts, and Financial Structure. Oxford University Press, ISBN   0-19-828881-6.
  12. Special Issue of Journal of Retailing in Honor of The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2009 to Oliver E. Williamson, Volume 86, Issue 3, pp. 209–290 (September 2010). Edited by Arne Nygaard and Robert Dahlstrom

From the Haas School of Business, University of California, Berkeley:

From the University of California, Berkeley:

In The News:

Awards
Preceded by
Paul Krugman
Laureate of the Nobel Memorial Prize in Economics
2009
Served alongside: Elinor Ostrom
Succeeded by
Peter A. Diamond
Dale T. Mortensen
Christopher A. Pissarides