In: Economics
This paradigm assumes that institutions will avoid transactions in the open market if the cost of completing the same actions internally, or in-house, carries a lower price.
Lower prices is here main decisions maker to do payment by using internally mode as it keep cost of transaction low as compare to open market . As internally transaction are related to transfer of stock within the firm from one department to another.in such a way majority share still keep with company or firm not with outsider.