At the very centre of this working paper is the notion of asset specificity. I will therefore first of all introduce this concept (infra I.1.) and give a real-world example (infra I.2.). This will be followed by an illustration of the positive and negative ramifications of asset specificity...

We remove the technical assumption $\gamma>0$ imposed by Dai et. al. who consider the optimal investment and consumption decision of a CRRA investor facing proportional transaction costs and finite time horizon. As a by-product, we obtain an estimate on the optimal consumption

This study while validating the increasing role for financial intermediaries in economic development has attempted to highlight the importance of reduction of transaction costs for financial deepening and consequent economic growth. It is elucidated that higher transaction costs of borrowing for...

IT outsourcing is becoming an integral part of the IS sourcing strategy for an increasing number of banks. It is often claimed that the Transaction Cost Framework provides a basis for sourcing decisions. Further the IT-department's capability to manage long-term relationships with its...

Adopting a simplistic view of Coase (1960), most economic analyses of property rights disregard both the key advantage that legal property rights (that is, in rem rights) provide to rightholders in terms of enhanced enforcement, and the difficulties they pose to acquirers in terms of information...

This working paper provides a summary on transaction cost economics (TCE) and recent developments thereof. After an introductory discussion of TCE's role within the field of New Institutional Economics, a critical analysis of the contribution of the existing body of empirical literature is...

Like many professional sports leagues worldwide, the National Basketball Association is organized as a cooperative of team owners. We argue that league ownership structures must balance two types of transaction costs: the costs of contracting with stakeholders of the league, importantly players,...

This article takes the pathbreaking Coasen arguments against Pigou and turns them against "the market-based transaction cost" approach favored by Judge Posner and other Chicago-style microeconomists. The concept of transaction costs does not have the sort of theoretical intelligibility nor the...