Transaction costs are a significant factor in outsourcing decisions. In the case of Internet security, outsourcing has higher transaction costs for two major reasons: (1) the outsourcing process is not yet standardized and (2) there is uncertainty about the frequency and impact of cyber attacks creating large variations in coordination costs. In this paper we study the effects of transaction co...

This survey sketches the broad landscape of the field of transaction costs measurement. It surveys the main research areas concerning transaction costs and offers a taxonomy: monetary and financial economics, Williamsonian transaction cost economics, the transaction sector, non-market transaction costs, environmental and ecological economics, institutions and economic growth, and the economics ...

Consumers incur many transaction costs in purchasing and using most products. This paper examines the effects of a reduction in such consumer transaction costs caused by market-level technological advances. Using a model in which consumers are simultaneously heterogenous in their transaction costs and in their marginal valuation of product quality, we highlight two mechanisms that can cause suc...

Transaction costs” are commonly referred to in the recent literature on aid effectiveness. The shift to a new partnership aid paradigm (cf. the Paris Agenda) is grounded on the desire to render aid more effective, notably through reducing the high transaction costs generated by the project approach. Aid transaction costs, however, have neither been consistently defined nor measured. In this pap...

Theory suggests that when transaction costs are low, corporations and stakeholders can minimize social costs by transacting to their mutual advantage, but when transaction costs are high, reducing social costs requires the intervention of a centralized institution. In surprisingly little work have scholars considered what happens in between—when transaction costs exist but recourse to hierarchi...

Transaction costs analysis is concerned with ways of aligning appropriate governance modes with the attributes of economic transactions. Nowadays transaction costs are universally accepted, despite the difficulty in measuring and quantifying them. Starting from the customary definition of transaction costs, this paper proposes a model for the buyer/seller relationship, focusing on the uncertain...

In this conceptual paper, we argue that the organizational focus on transaction costs needs to be balanced by an attention to transaction benefits, both at the individual and organizational levels. To the transaction characteristics suggested by transaction costs economics, we add four additional ones likely to foster transaction benefits: intensity of knowledge, segmentation of knowledge, disp...

In this paper, we consider the utility indifference pricing and utility-based pricing in the market with transaction costs. The utility maximization problem including contingent claims in the market with transaction costs has been considered by Bouchard(2002)[3]. Following his results, we consider the market equilibrium of contingent claims. In order to do this, specifying the utility function ...

Transaction costs in financial intermediation are a measure of the 'friction' existing in the functioning of financial markets. The higher the costs of intermediation, the less efficient the performance of the financial sector in resource allocation and distribution. Transaction costs frequently increase as a result of regulations imposed on financial markets, such as interest-rate restrictions...