Oliver Williamson,2009 Nobel Prize in Economics Laureate, was invited to be Honorary Professor of Tsinghua University at SEM, where he delivered a speech named “Transaction Cost Economics in Historical Perspective (and the Road to the Nobel Prize)” on the same day and took part in a summit forum held by the Center for Corporate Governance.

Vice President YUAN Si conferring the letter of professorship to Professor Williamson

Williamson has held professorship in business administration, economics and law at the University of California, Berkeley since 1988. He is the Edgar F. Kaiser Professor Emeritus at the Haas School of Business. He was awarded the Nobel Prize in Economics in 2009 with Elinor Ostrom for “his analysis of economic governance, especially the boundaries of the firm.” As a scholar, Williamson specializes in transaction cost economics, and made distinct contribution to the development of new institutional economics.

The ceremony was hosted by Professor QIAN Yingyi, Dean of SEM and Director of the Center for Corporate Governance. YUAN Si, Vice President of Tsinghua University, conferred the letter of professorship to Williamson.

Left to right: NING Gaoning, YUAN Si, Oliver Williamson, QIAN Yingyi, NING Xiangdong

In the speech, Williamson reviewed the history of transaction cost economics, shared his researches, as well as his academic and career background, encouraging students with his experience on “the road to the Nobel Prize.”

After the ceremony was a summit forum of the Center for Corporate Governance. NING Gaoning, Chairman of COFCO Limited, was invited to be a guest participant. Dean QIAN Yingyi, Professor Williamson and NING Gaoning discussed the future of Chinese corporate governance.

Professor Williamson delivering speech

Transaction cost economics, according to NING Gaoning, has profound implications for Chinese businesses. With the development of enterprises, they will inevitably encounter problems in terms of asset allocation and strategic arrangements, and there will be conflict of interests among internal “units.”

Williamson agrees with NING Gaoning, saying that “the bigger the better” doesn’t simply apply to enterprises. Outsourcing is sometimes a more efficient, optimized option than internal solutions.

The summit forum of the Center for Corporate Governance