Williamson's transaction theory and industrial network approach

(Advanced structural framework) Williamson's transaction theory: Will we produce something ourselves, or will we purchase it from elsewhere? If products are homogenous, sellers can not lie. This means that there is a low transactional cost because information gathering is cheaper. Homogenous products will thus be bought in the market. Heterogenous products should be produced by yourself, as the information gathering needed to know whom to purchase from. Industrial network approach: All products are heterogenous in some way. A Toyota is different from a Ford, meaning that when purchasing a car we will want to create a bond. Creating the bond will mean a high transaction cost, but after establishing the bond, transaction costs will decrease dramatically.