Perspectives

P. K. Rao
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P. K. Rao: Global Development Institute

Chapter 10 in The Economics of Transaction Costs, 2003, pp 170-175 from Palgrave Macmillan

Abstract: Abstract Transaction costs represent resource losses, not necessarily because of the lack of information alone. TC also arise where economic decisionmakers face uncertainties about the activities of other actors in the economic system. The ITCE framework suggested in Chapter 1 needs to be advanced further. Similarly, there is a need to move forward from the accounting approaches of assessing TC in terms of the costs of information, monitoring and enforcement (and related aspects) to include opportunity costs and loss of efficiency relative to a feasible alternative organization of activities. Some parts of the TCE literature suggest that TC are near zero if there exists perfect information; this is not tenable, as the definition of TC in this instance is very narrowly interpreted.

Keywords: Transaction Cost; Information Cost; Allocative Efficiency; Price Dispersion; Perfect Competition (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-59768-6_10

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DOI: 10.1057/9780230597686_10

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