The objective of this paper is to apply the
theory of payment schemes and transaction costs
to the in-house performance of silvicultural activities by BC forest companies. That is, we focus
only on the relationships outlined in the lower,
right-hand-side of Fig. 1. In Section 2, we describe the payment schemes that characterize BC’s
silvicultural sector, and in Section 3, provide an
explanation of payment methods from the perspective of transaction costs logic. In Section 4, a
simple model is used to test several transaction
cost hypotheses using data from a 1997 survey of
BC forest companies. The conclusions ensue.