Oliver Williamson (Economist)

Oliver Williamson was an influential American economist known for his work on transaction cost economics, which explores how costs related to economic exchanges influence organizational structures and relationships. He examined why firms exist, how they operate, and how they structure contracts to minimize costs and risks in transactions. Williamson emphasized the importance of governance mechanisms—such as contracts and hierarchies—in managing relationships and ensuring efficiency. For his contributions, he was awarded the Nobel Prize in Economic Sciences in 2009, significantly shaping our understanding of how businesses and institutions function in the real world.