We study task allocation in multi-agent systems. Task allocation has become a major research topic over the past years [3]. Here, we are particularly interested in allocation of tasks among firms on industrial, interfirm markets. These are traditionally studied using transaction cost economics (TCE). However, as has been widely acknowledged, TCE does not include dynamics of learning, trust and ...

Although considerable research has been conducted into the definition and classification of business models (BM) over the past decade, not much research has focused on the characteristics of transactions with distinct phases in these BMs. Both transaction cost economics and consumer behavior research highlight the relevance of transaction phases. We develop a seven factor framework that differe...

A barter transaction allows for two parties to exchange goods or services without using money. Direct barter is often referred to as the “double coincidence of wants” and requires that each of the two parties involved in the transaction each have a good satisfying a specific need of the other party. This results in high transaction costs, primarily associated with the search to find the “double...

The standard acceptance policy for a cryptocurrency transaction at most exchanges is to wait until the transaction is placed in the blockchain and followed by a certain number of blocks. However, as noted by Sompolinsky and Zohar [16], the amount of time for blocks to arrive should also be taken into account as it affects the probability of double spending. Specifically, they propose a dynamic ...

Many countries have adopted or are considering incentive approaches to environmental regulation, such as tradable permit schemes to control pollution. Regulators influence the success of tradable permit programs by their choice of market rules and permit allocation mechanisms. This paper uses laboratory experiments to study how the transaction costs incurred by participants interact with the in...

The duration of a supply relationship depends on two types of costs: (i) the transaction cost of switching suppliers and (ii) the cost of being matched to an inefficient supplier when the relationship lasts too long. I develop a model of optimal contract duration that captures this tradeoff, and I provide conditions that identify the underlying cost structure. Latent transaction costs are ident...

This study proposes and tests a model of the information technology (IT) outsourcing decision that includes antecedents of both transaction costs and production costs. Production costs show the most robust influence on governance. Skills required to execute the activities, interdependence between the activities, and firm-level characteristics – uncertainty and knowledge intensity – are the main...