- "The idea that transactions form the basis of economic thinking was introduced by the institutional economist John R. Commons in 1931."
A study of how transaction costs, defined as the costs incurred by firms in making economic transactions, affect the organization of markets and the behavior of firms.
Transaction Costs: The cost involved in carrying out a transaction beyond the price paid for goods or services, including search costs, bargaining costs, monitoring and enforcement costs, and so on.
Property Rights: The legal rights to control and use of an asset or resource, which are critical in determining the allocation of resources and the efficiency of transactions.
Governance Structures: The system of rules, roles, and relationships used to manage transactions in economic activities, ranging from hierarchical management structures to market-based mechanisms.
Contract Theory: The study of how contracts are designed and enforced to minimize transaction costs and achieve efficient outcomes in economic activities.
Coase Theorem: The idea that in a world of perfect information and zero transaction costs, the allocation of resources will be the same regardless of initial property rights.
Vertical Integration: The extent to which firms control different stages of production and distribution in a supply chain, which affects the coordination of transactions and the allocation of costs and risks.
Opportunism and Moral Hazard: The problem of agents taking advantage of information asymmetry and shirking responsibilities, which can increase the transaction costs and undermine efficiency in economic activities.
Agency Theory: The study of how agents act on behalf of principal to achieve common interests, and how the alignment of incentives, monitoring and control mechanisms, and contract design can affect the efficiency of transactions.
Network Effects and Lock-In: The impact of technology or market structure on the formation of cooperative relations or the maintenance of market power, which can create transaction cost advantages or disadvantages for firms.
Information and Communication Technology: The role of digital platforms and data analytics in reducing search costs, improving communication and coordination, and increasing market transparency, which can transform transaction costs and create new business models.
Search and Information Costs: These are the costs of finding and evaluating potential business partners, products, or services.
Bargaining Costs: These are the costs associated with negotiating the terms of a deal, including the time, resources, and money expended.
Decision Costs: These are the costs of making decisions, including the time, effort, and expertise required.
Coordination Costs: These are the costs of aligning the activities of different parties to achieve efficiency and effectiveness.
Monitoring Costs: These are the costs of observing and enforcing compliance with contractual obligations.
Enforcement Costs: These are the costs of resolving disputes and enforcing contracts.
Opportunism: This refers to the costs incurred when one party acts opportunistically or engages in opportunistic behavior to the detriment of the other party.
- "Oliver E. Williamson's Transaction Cost Economics article, published in 2008, popularized the concept of transaction costs."
- "A transaction cost is a cost in making any economic trade when participating in a market."
- "Douglass C. North argues that institutions, understood as the set of rules in a society, are key in the determination of transaction costs."
- "Institutions that facilitate low transaction costs boost economic growth."
- "The idea that transactions form the basis of economic thinking was introduced by the institutional economist John R. Commons in 1931."
- "Oliver E. Williamson's Transaction Cost Economics article, published in 2008, popularized the concept of transaction costs."
- "A transaction cost is a cost in making any economic trade when participating in a market."
- "Institutions, understood as the set of rules in a society, are key in the determination of transaction costs."
- "Institutions that facilitate low transaction costs boost economic growth."
- "The idea that transactions form the basis of economic thinking was introduced by the institutional economist John R. Commons in 1931."
- "Oliver E. Williamson's Transaction Cost Economics article, published in 2008, popularized the concept of transaction costs."
- "A transaction cost is a cost in making any economic trade when participating in a market."
- "Institutions, understood as the set of rules in a society, are key in the determination of transaction costs."
- "Institutions that facilitate low transaction costs boost economic growth."
- "The idea that transactions form the basis of economic thinking was introduced by the institutional economist John R. Commons in 1931."
- "Oliver E. Williamson's Transaction Cost Economics article, published in 2008, popularized the concept of transaction costs."
- "A transaction cost is a cost in making any economic trade when participating in a market."
- "Institutions, understood as the set of rules in a society, are key in the determination of transaction costs."
- "Institutions that facilitate low transaction costs boost economic growth."