The inclusion of transaction costs is an essential element of any realistic portfolio optimization. In this paper, we extend the standard portfolio problem to consider convex transaction costs that are incurred to rebalance an investment portfolio. Market impact costs measure the effect on the price of a security that result from an effort to buy or sell the security, and they can constitute a ...

Advances in computers and telecommunications and the development of the Internet have been applied to develop new transaction technologies that lower transaction costs. By lowering transaction costs, these changes in transaction technology make possible transaction innovation, that is, the development of new types of market transactions. Transaction innovation changes not only business methods ...

This paper examines multiple contract design choices in the context of transaction and relational attributes and consequent ex ante and ex post transaction costs. It focuses on two understudied themes in the IT outsourcing literature. First, while the literature is predominantly concerned with opportunism and consequent ex post hazard costs that contracts can safeguard against, parties to a con...