R&R Case

Bob Reiss was an entrepreneur. He saw an chance in the merchandise to make a profit and he succeeded. The following describes his merchandise relationss and whether they were right or wrong using transaction cost economics theories. I allow use Oliver Williamsons theories and rules to decide whether the transactions were correct. At the end I will have enough information to decide if every opportunity needs a firm and if there is room for entrepreneurs who face on the price mechanism.

Reisss first major grocery transaction was designing the game. He took this to the market and found a professional inventor, whom he knew. This was the right decision. This game only required to be designed once. The frequency was low. Therefore there was no point in wasting time and incurring the cost of creating it. Also this product was unique. He would not have been commensurate to create it as simply as the market, which had more experience. Since Reiss knew the causation the uncertainty of him defaulting on the contract was very low.



He similarly knew that the designer would be incite to complete the project because he aligned their interests together through a sales motivated contract.

Next was Reisss responsibility to set up operations to take the game to market. He didnt have the hard cash flow to do this. Instead of raising the money himself he established a partnership to create the firm puniness Inc and went to the market to gain the funding. His new partner Kaplan gave him a linage of credit, handled day-to-day details,If you want to get a full essay, secern it on our website: Orderessay



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