TRANSACTION COSTS

Get Started. It's Free
or sign up with your email address
Rocket clouds
TRANSACTION COSTS by Mind Map: TRANSACTION COSTS

1. Types of TC

1.1. Inflation Cost

1.1.1. Screening Cost

1.1.2. Search Cost

1.2. Negotiation Cost

1.2.1. Enforcing Cost

1.2.2. Monitoring Cost

1.3. Inefficient Monetary Transaction

1.3.1. Intermediaries Cost

1.3.2. Cost of Disequilibrium

1.3.3. Transportaion Cost

1.4. Information Assymetry

1.4.1. Cost of Communication and Information

1.4.2. Adverse Selection

1.4.3. Moral Hazard

1.4.4. Price Discrimination

2. Criticism of TC Approach

2.1. Relatively little formal analysis

2.2. Bewildering Complexity

2.3. Impossible to Quantify

3. Determinants of TC

3.1. Frequency of Transaction

3.2. Uncertainty

3.3. Limited Rationality

3.4. Opportunistic Behavior

3.5. Asset Specificity

4. Interpretation of TC

4.1. Monetary

4.2. Relational

4.3. Institutional

5. Restricting TC

5.1. Governance

5.2. Transactions with Small Set of People

5.3. Use of Social Capital

5.3.1. Goodwill

5.3.2. Coordination

5.4. Monetisation

5.5. Economies of Scale and Scope

5.6. Greater Information Symmetry

5.7. IT Solutions

5.7.1. Bypassing intermediaries

5.7.2. Reducing Communication Cost

5.7.3. Delivering Services

6. Gains of Minimizing Tc

6.1. Static Gains

6.2. Dynamic Gains