Costs incurred when conducting transactions - search cost - Costs incurred in decision making - The cost of finding the goods you are looking for in the marketplace - Cost of identifying who is the cheapest - negotiation cost - Cost required to reach agreement - Cost required to enter into a contract - Cost of Supervision and Enforcement - Cost required to enforce compliance with the contract - Cost of knowing if you are honoring your contract
- [[Oliver Williamson]]
- 2009 [[Nobel Prize in Economics]] [[Transaction Cost Theory]]
- Factors that determine transaction costs are human [[limited rationality]] and [[Opportunistic Behavior]], [[Frequency of transactions]] and [[asset specificity]] and [[uncertainty]].
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