Transaction costs are those costs, those by the recourse to of the market, thus the transaction of rights of disposal (e.g. ) Develop for purchase, sales, rent. The transaction cost theory means that with each transaction also transaction costs develop.

Transaction costs are the result of the limited of the participants in combination with Opportunismus, complexity of the environment and specificity of the investments. The costs of a transaction depend on in which co-ordination form (see the transaction takes place. Depending upon height of the transaction costs the exchange of goods finds horizontal (market-been based) or therefore vertically (within an enterprise) instead of.

Typology of the transaction costs

The following costs fall under the transaction costs:

Ex ante

• Provision of information costs (e.g. Information search over potenzielle transaction partners)
• Preparation costs (e.g. Establishment of contact)
• Agreement costs (e.g. Negotiations, formulation of contract, agreement)

Ex post office

• Completion costs (e.g. Broker's commission, transport costs)
• Control costs (e.g. Observance of date, quality, quantity, price and secrecy arrangements, reduction of the supply)
• Change cost/adjustment costs (e.g. Date, quality, quantity and price adjustments)

One understands search, preparation, information, addition negotiation, decision, agreement, completion, security, penetration, control, adjustment and completion costs more concretely by transaction costs.

Transaction costs e.g. develop., if between the persons taken part in a transaction communication need, communication problems, misunderstandings or conflicts arise.

Under transaction costs the price of the property does not fall, as far as pure production costs are concerned.

The height of transaction costs can prevent a coming off of transactions, if for instance the initial information costs of a potenziellen buyer turn out so highly that the transaction is prohibitiv raised the price of. Also the existence prevents from transaction costs that buyers or salesmen find the attractive offer for them, since the transaction costs rising with the search counterbalance possible advantages of further offers again (theory of the removing marginal yield).

Transaction costs as for instance addition or measuring costs can prevent even the existence of markets for certain goods. New information forms can lower these transaction costs (eBay, Wikipedia).

For its transaction cost beginning, the Coase theorem received 1991 the US-American political economist Ronald Coase to the Nobelpreis for economic science.

Literature

• Williamson, olive. E. (1975): Markets and Hierarchies: Analysis and Antitrust Implications, New York.
• Williamson, olive E. (1990): The economic institutions of capitalism.
• North, Douglas C. (1998): Institutions, institutional change and restaurant economics.

Articles in category "Transaction costs"

We found here 99 articles.

Related Websites

We found here 4 related websites.

• The Transaction Cost Approach to the Theory of the Firm
  The transaction cost approach to the theory of the firm was created by Ronald Coase. Transaction cost refers to the cost of providing for some good or ...


• Transaction cost - Wikipedia, the free encyclopedia
  The term "transaction cost" is frequently thought to have been coined by Ronald Coase, ... Today, transaction cost economics is used to explain a number of ...


• Transaction cost - Wikipedia, the free encyclopedia
  A number of kinds of transaction cost have come to be known by particular names. ... Today, transaction cost economics is used to explain a number of ...


• Transaction cost economics
  This page is the main page for information about the research tradition of transaction cost economics initiated by Williamson [1975, 1985].