Linked from

The 31 pages that link to Transaction Cost, each with the reason it gives.

• Property rightsRelated: High transaction costs can prevent rights from being transferred to their most valued uses.

• Division of laborRelated: Specialized production may require costly exchanges and oversight between contributors.

• Information asymmetryRelated: Finding and verifying information adds costs to exchange.

• Market failureRelated: High coordination costs can block trades that would otherwise improve allocation.

• Purchasing power parityRelated: Transport, tariffs, and other costs create a band within which price gaps can persist.

• Institutional economicsRelated: Transaction costs help explain why institutions and organizational forms matter for exchange.

• MarketRelated: Search, bargaining, and enforcement costs affect whether exchanges occur.

• Coase theoremRelated: The theorem’s zero-cost assumption removes obstacles that can prevent bargaining from reaching an efficient allocation.

• Efficient-market hypothesisRelated: Even a genuine pricing anomaly may offer no net advantage once the costs of exploiting it are included.

• ArbitrageRelated: Fees, taxes, and settlement expenses can erase apparent arbitrage profits.

• Bargaining powerRelated: High costs of finding or replacing a partner can weaken a party’s options.

• Portfolio optimizationRelated: Including trading costs can make the best portfolio differ from the frictionless optimum.

• Law and economicsRelated: These costs explain why legal rules can matter even when parties could theoretically bargain.

• Ronald CoaseRelated: Coase used these costs to explain why economic activity sometimes moves inside firms.

• BargainingRelated: High negotiation and enforcement costs can consume the gains that make bargaining worthwhile.

• Douglass NorthRelated: North used transaction costs to explain why institutions affect economic performance.

• Knowledge problemRelated: Communication and coordination consume resources, making complete information-sharing impractical.

• Market efficiencyRelated: High exchange costs can prevent beneficial trades even when buyers and sellers exist.

• Trade (commerce)Related: These costs shape whether a potential trade is practical.

• Free marketRelated: Search, bargaining, and enforcement costs shape whether market exchange is practical.

• George StiglerRelated: Information search and market exchange both make costs central to Stigler’s explanations.

• Voluntary exchangeRelated: These costs can prevent mutually acceptable exchanges from taking place.

• Agricultural marketingRelated: Search, transport, and negotiation costs shape which marketing channels are viable.

• Business economicsRelated: Transaction costs help explain why firms sometimes organize activity internally rather than through markets.

• Constitutional economicsRelated: Rule design can reduce or redistribute the costs of bargaining and enforcement.

• CommerceRelated: These costs shape which commercial exchanges are practical.

• Denomination effectRelated: Breaking a large note may impose practical friction distinct from its psychological spending effect.