Several years ago, I presented a paper in an economic methodology session at the AEA in which Williamson also presented a paper. He was a fellow pluralist in method. I think his work deserves more attention than I have given it. The profession will be worse for his absence.
(p. A9) Building on the work of Ronald Coase, Dr. Williamson developed transaction-cost economics, examining costs that go beyond the price of a good or service.
. . .
Some of Dr. Williamson’s thinking took shape when he worked for the Justice Department’s antitrust division in 1966 and 1967.
The department had accused Schwinn & Co. of restraining trade by limiting the retailing of its bicycles to authorized merchants. The conventional wisdom among antitrust enforcers was that such arrangements could be explained only as an effort to reduce competition.
Dr. Williamson found the question more complicated and argued that Schwinn’s motive might be to reduce costs. For instance, a restricted number of retailers would make it less costly to control quality and agree on how to share advertising expenses. The resulting increase in efficiency could benefit consumers.
. . .
Pablo Spiller, a friend and Berkeley colleague who lived across the street from Dr. Williamson, recalled that he spoke precisely but not always directly. One night Dr. Spiller was playing music a bit too loudly. Dr. Williamson called. Rather than mentioning the volume, he said: “You know, I actually like the current song more than all the previous ones.”
For the full obituary, see:
(Note: ellipses added.)
(Note: the online version of the obituary has the date June 4, 2020, and the title “Oliver Williamson, Nobel Economics Winner, Studied Inner Life of Firms.”)