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From course:

Industrial Organisation 2022

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Question:

What are Williamsons 4 types of asset specificity?

Author: Hjalmer Pedersen



Answer:

1. Site specificity: You have invested in production facilities located close to each other 2. Physical asset specificity: Investing in assets that can be used only if the supplier / customer relationship is maintained 3. Human asset specificity: Investing in human capital that can be used only if the supplier / customer relationship is maintained 4. Dedicated assets specificity: Investing in sufficiently large plants to utilize cost advantages. Only profitable as long as the customer relationship is maintained.


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1.	Site specificity: You have invested in production facilities located close to each other
2.	Physical asset specificity: Investing in assets that can be used only if the supplier / customer relationship is maintained
3.	Human asset specificity: Investing in human capital that can be used only if the supplier / customer relationship is maintained
4.	Dedicated assets specificity: Investing in sufficiently large plants to utilize cost advantages. Only profitable as long as the customer relationship is maintained.
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