Market-based principles can be used to manage the risk of distributed peer-to-peer transactions. This is demonstrated by Ptrim, a system that builds a transaction default market on top of a main transaction processing system, within which peers offer to underwrite the transaction risk for a slight increase in the transaction cost. The insurance cost, determined through market-based mechanisms, ...

Electronically supported transaction processes may lead to efficiency gains and cost reductions enhancing the operational effectiveness. Electronic trade systems improve coordination between buyers and sellers and increase transaction efficiency. The paper shows an exemplary agrifood market with a comparatively high level of inefficiency where electronic trading could benefit participating ente...

a r t i c l e i n f o We conduct a laboratory experiment to study whether giving people more time to donate to charity reduces donations. People may intend to donate, but because of the transaction costs of doing so, postpone making the payment until they are less busy, and having postponed making the donation once, keep postponing. We conjecture that transaction costs will have a greater effec...

Firms’ boundary choices have undergone careful examination in recent years, particularly in information services. While transaction cost economics provides a widely tested explanation for boundary choice, more recent theoretical work advances competing knowledge-based and measurement cost explanations. Similar to transaction cost economics, these theories examine the impact of exchange attribut...

As a conceptual study this chapter takes open innovation as a tool that has been considered from the point of view of collaboration between the Industry and the Academy. However, if considered under the framework of the Resource Based Theory, specifically regarding Transaction Cost, it can be revealed that the two parties (Industry and Academy) are in fact compatible. Main focus of the discussi...

This paper explores the increasing the heterogeneity of an agent population to stabilize decentralized systems by adding bias terms to each agent’s expected payoffs. Two approaches are evaluated, corresponding to heterogeneous preferences and heterogeneous transaction costs; empirically, the transaction cost case provides stability with near optimal payoffs under certain conditions. Theoretical...

We use a transaction cost framework to analyze the performance of gas-based private investments in two coastal Indian states e Andhra Pradesh and Gujarat. These states have a similar regulatory set-up and have seen bulk of the initial gas-based private investment being made. Yet they differ greatly in terms of actual generation. Andhra Pradesh’s lack of success can be attributed to upstream reg...

This study seeks to the answer the question of how an individual would trade off between listing fee (i.e., cost of listing an auction item) and transaction probability (i.e., the chance that a product will be sold). Applying the trade-off decision-making paradigm into the auction context, we examine a seller’s choice of online auction outlet and subsequent starting price strategies when facing...

The monetary character of trade, use of a common medium of exchange, is shown to be an outcome of economic general equilibrium in the presence of transaction costs and market segmentation (in trading posts with a separate budget constraint at each transaction). Commodity money arises endogenously as the most liquid (lowest transaction cost) asset. Scale economies in transaction cost account for...