Addressing Global Environmental Externalities: Transaction Costs Considerations

Environmental Policy Making : Liability for Externalities in the Presence of Transaction Costs

The existence of a theoretical market solution to the problem of externalities has been generally accepted since the seminal contribution of Coase. 1 In the absence of transaction costs, the potential for bargaining between concerned parties has the effect of internalizing any externality. The burden of legal liability for external effects does not therefore affect the attainment of Pareto effi...

Addressing Environmental Externalities from Electricity Generation in South Carolina

Oak Ridge National Laboratory is managed by UT-Battelle, LLC, for the U.S. Department of Energy under contract number DE-AC0500OR22725. The research was funded by the Oak Ridge National Laboratory’s State Partnerships Program and by the South Carolina State Energy Office. The views expressed in this paper do not necessarily reflect those of Oak Ridge National Laboratory, the South Carolina Stat...

The Political Transaction Costs and Uncertainties of Establishing Environmental Rights

Transaction Costs in Global Supply Chains of Manufacturing Companies

Outsourcing has advanced to an important measure that is applied broadly in operations management. Nowadays, suppliers of manufacturing companies do not only provide direct material like raw material and operational supplements but offer components and advanced modules incurring many value-adding stages. Whereas in the past companies built up local supplier networks, they recently tend to searc...

Full - information transaction costs ∗

In a world with private information and learning on the part of the market participants, the (positive) difference between the observed transaction price of an asset and the corresponding unobserved full-information price (the price that reflects private and public information about the asset) represents an ideal measure of market quality. We call this difference “full-information transaction c...