MANAGEMENT OF THE OPPORTUNISTIC BEHAVIOR COSTS AS A COMPONENT OF INDUSTRIAL COMPANY TRANSACTION COSTS IN THE PROCESS OF BUYING AND SELLING OF GOODS

Abstract

The article is devoted to opportunism of an industrial company supplier arising in the procurement of
goods. Opportunism is considered as a supply disruption factor. Various manifestations of opportunistic behavior
are described, and management tools are indicated to control opportunistic transaction costs: supplier
diversification, supplier incentive to carry out measures to reduce the probability of disruption, imposition of
penalties. The decision model for the industrial enterprise aimed at management of the opportunistic transaction
costs was built. The model is based on qualification choice of suppliers for setting the order based on
the criterion “price of the product, reputation of the seller”. The model shows constraints on the amount of
costs on searching for information about the product, on the amount of negotiation costs, and the costs of
measures to reduce the probability of the opportunistic behavior. The article presents an objective function
aimed at maximization of expected income. These costs are described with specification of the time of their
implementation use during the process of interaction with the supplier. Measures aimed at reducing the opportunistic
behavior of the counterparty are stated. Recommendations for managing the costs of the opportunistic
behavior of a supplier, including the creation of the vector of suppliers on the likelihood of opportunism,
are proposed.