 The topic of our economic homepage is Transaction Cost .
U
know what actually transaction cost is? If u don't , it doesn't matter. . . Let me tell you now ! In the broadest sense,
transaction costs encompass
all those costs that cannot be conceived to
exist in a Robinson Crusoe economy where neither
property rights, nor transactions, nor any kind
of economic organization can be found.
Thus
transaction costs are actually costs of
setting up or operating economic
institution
or economic system. However, it is misleading to define transaction costs as exchange costs, since
transaction costs still
exist in an economy where market transactions
or exchange are suppressed, such as in a communist
state. ¡@ ¡@ ¡@ |