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The model shows institutions and market as a possible form of organization to coordinate economic transactions. When the external transaction costs are higher than the internal transaction costs, the company will grow. If the internal transaction costs are higher than the external transaction costs
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668:{{Information |Description={{de|1=Das Markt-Hierarchie-Modell zeigt, warum Unternehmen gegründet oder geschlossen, vergrößert oder verkleinert werden. Grundlage für dieses Modell bildet die Neue Insitutionenökonomik, insbesondere die Transaktionskost
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Die
Darstellung zeigt ausgehend von der Transaktionskostentheorie die Begründung für die Existenz von Unternehmen.
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