Businesses' transaction costs when contracting with governments: the impact of product complexity and public contract management experience

The problems of research of internalities and externalities with the further development of the general classification of externalities of economic activity of the enterprise are defined. The influence of negative and positive externalities on society and enterprise is considered. The concept of negative externalities differs from transaction costs. It is noted that transaction costs can be reflected in cash and can be offset by market inclusion in the price of the products, but this is not possible for externalities. It is emphasized that the purpose of economic activity of any enterprise is to exceed the positive externalities over the negative and achieve the maximum difference between them. The different time duration of the impact of the enterprise on third parties is given. The sign of externalities on the scale of action is emphasized. The externalities of the enterprise are considered in their essence according to the principles of sustainable development, highlighting economic, social and environmental externalities. It is emphasized that economic externalities can arise in the course of the whole business cycle of full-fledged work of all parts of the enterprise. In contrast to economic, social externalities affect people both within the enterprise, that is workers and citizens of the society in which the enterprise operates. And when it comes to environmental externalities, the mediator between the source and recipient of externalities is the environment. Externalities are distinguished according to the means of accounting and the degree of influence on the subject of perception. The necessity of regulation of externalities through internalization and actions of the enterprise with the help of state and market instruments is substantiated. It is emphasized that internalization is the transformation of negative externalities into positive ones in terms of convergence of marginal costs and benefits of the enterprise to marginal social costs and utility.

Download Full-text

Experimental Markets and Environmental Policy

Agricultural and Resource Economics Review ◽

10.1017/s1068280500004706 ◽

1993 ◽

Vol 22 (2) ◽

pp. 117-129 ◽

Cited By ~ 15

Author(s):

Jason F. Shogren

Keyword(s):

Environmental Policy ◽

Transaction Costs ◽

Experimental Auction ◽

Dynamic Choice ◽

Auction Markets ◽

Experimental Markets ◽

Reduction Mechanisms ◽

Sequential Reduction ◽

The Impact ◽

Coasian Bargaining

Experimental markets can be a useful tool to guide and evaluate environmental policy. This paper reviews four experiments to illustrate. Two institutional experiments are considered—Coasian bargaining with positive transaction costs, and a gaming experiment of dynamic choice in a conflict. Two valuation experiments are also discussed—the impact of sequential reduction mechanisms on the value of risk, and experimental auction markets to elicit the value of safer food.

Download Full-text

UNDERSTANDING THE GREY ENTREPRENEUR

Journal of Enterprising Culture ◽

10.1142/s0218495804000087 ◽

2004 ◽

Vol 12 (02) ◽

pp. 147-164 ◽

Cited By ~ 103

Author(s):

PAULL WEBER ◽

MICHAEL SCHAPER

Keyword(s):

Female Entrepreneurs ◽

Role Of Government ◽

Related Data ◽

Age Related ◽

Individual Enterprise ◽

Management Experience ◽

Productive Ageing ◽

Developed World ◽

The Impact

Demographic trends in the developed world indicate that older entrepreneurs will play an increasingly important part of economic activity as populations age, yet this cohort has been largely ignored in entrepreneurship research. This paper provides an overview of current research about the so-called "grey entrepreneur" (also known as senior, older, third age or elderly entrepreneurs), drawing on research from a number of nations. The extant literature indicates that a majority of older entrepreneurs are male, although the number of older female entrepreneurs is increasing; they are also less likely to possess formal educational qualifications than younger entrepreneurs. Some of the advantages that such entrepreneurs possess include greater levels of technical, industrial and management experience; superior personal networks; and a stronger financial asset base. Some of the disadvantages or potential barriers faced by older entrepreneurs can include lower levels of health, energy and productivity; ageism; and the value that his or her society places on active ("productive") ageing. Numerous issues still remain to be investigated in this field of research. These include the differences between younger and older entrepreneurs; their motives and success criteria; the impact of financial, knowledge and other resources on venturing behaviour; the role of government policies in fostering or hampering individual enterprise; and the significance of cultural differences amongst older entrepreneurs. Research in this field is currently also hampered by a multiplicity of terms and definitions, a lack of age-related data about different entrepreneurial cohorts, and the problems inherent in operationalising the concept of the "grey entrepreneur."

Download Full-text

INSTITUTIONAL ISSUES FOR THE BULGARIAN TOURISM INDUSTRY FOLLOWING AMENDMENTS IN TAX LEGISLATION

Trakia Journal of Sciences ◽

10.15547/tjs.2019.s.01.012 ◽

2019 ◽

Vol 17 (Suppl.1) ◽

pp. 64-68

Author(s):

M. Georgiev ◽

Iv. Dimitrova

Keyword(s):

Transaction Costs ◽

Institutional Environment ◽

Tourism Industry ◽

Economic Effects ◽

Coordination Mechanisms ◽

Tax Legislation ◽

Institutional Issues ◽

Tourism Sector ◽

Retail Outlets ◽

The Impact

The current study examines the institutional issues in the tourism sector of Bulgaria in terms of the impact of the by-law Ordinance № 18 of 13 December 2006 on the registration and reporting of sales in retail outlets through fiscal devices. The research applies: (1) defining the legal “error”; (2) the information asymmetries that pose a problem to the coordination mechanisms of the organization are described; (3) the negative economic effects are presented through the measurement of transaction costs. In conclusion, proposals have been made to improve this section of the institutional environment.

Download Full-text

The Impact of Supply Chain Partnership on Firm Performance: an Empirical Study Based on Listed Manufacturing Companies in China

BCP Business & Management ◽

10.54691/bcpbm.v14i.124 ◽

2021 ◽

Vol 14 ◽

pp. 22-38

Author(s):

Panxin Zhou

Keyword(s):

Supply Chain ◽

Firm Performance ◽

Transaction Costs ◽

Resource Sharing ◽

Information Exchange ◽

Business Environment ◽

Manufacturing Companies ◽

Additional Test ◽

Global Business ◽

The Impact

Today, Supply Chain Management (SCM) is regarded as an essential strategic factor, which has a great deal of influence on earning competitiveness in global business environment. There are conflicts among all members of the SCM. In order to maximize the total profit of the SCM, negotiation among all members is necessary. For enterprise in the supply chain, the supply chain partnership has become a significant factor affecting firm performance. In this paper, I examine the impact of cooperation between enterprise and its supply chain partners. Specifically, I collect survey data from Chinese manufacturing firms about their relations with partners and use regression analysis to test hypotheses about the associations between firm performance and supply chain partnership. My results support that superior supplier partnership has a positive impact on reducing transaction costs and improving financial and market performance. In additional test, I establish a series of models with interactive terms. The results of additional test indicate that the impact is enhanced if the competition of each sub industry of the manufacturing industry is different. Above all, I put forward the following suggestions. Enterprise managers could establish an evaluation mechanism of suppliers and retailers, which select high-quality cooperative partners and reduce low-quality transaction costs for enterprises. When participating in business operation, shareholders could comprehensively understand the business conditions of various supply partners and choose reliable supply chain partners for investment. Also, the government can guide the realization of resource sharing and information exchange among supply chain enterprises, which is beneficial to create a more competitive supply chain to promote economic development.

Download Full-text

The impact of seed market access and transaction costs on potato biodiversity and yields in Bolivia

Environment and Development Economics ◽

10.1017/s1355770x12000265 ◽

2012 ◽

Vol 17 (5) ◽

pp. 633-661 ◽

Cited By ~ 1

Author(s):

Lina Salazar ◽

Paul Winters

Keyword(s):

Transaction Costs ◽

Market Access ◽

Market Participation ◽

Market Choice ◽

Crucial Effect ◽

Negative Effect ◽

Seed Market ◽

Using Data ◽

The Impact

AbstractUsing data from Bolivia, this paper analyzes seed market participation and how transaction costs in these markets influence intracrop biodiversity and the influence of biodiversity on yields. Results indicate that seed market attributes such as distance and market-level biodiversity have a crucial effect on a farmer's market choice, suggesting that farmers are willing to sacrifice time and income to travel further distances in order to reach markets with a broader range of varieties. This study finds that farmers from this sample who have access to seed markets are more likely to have higher levels of intracrop biodiversity. In addition, for market-integrated farmers, intracrop biodiversity does not seem to have a negative effect on yields, which suggests that improved market access does not threaten biodiversity in contexts with similar characteristics to the study site.

Download Full-text

To tell or not to tell? The impact of communicating consumer participation in new product development

Journal of Product & Brand Management ◽

10.1108/jpbm-07-2016-1276 ◽

2018 ◽

Vol 27 (2) ◽

pp. 158-171 ◽

Cited By ~ 7

Author(s):

Claudia Costa ◽

Rita Coelho do Vale

Keyword(s):

Product Development ◽

New Product Development ◽

Critical Role ◽

New Product ◽

Consumer Involvement ◽

Consumer Participation ◽

Product Complexity ◽

Content Type ◽

Innovation Ability ◽

The Impact

Purpose This paper aims to analyze the implications of communicating customer involvement in the ideation and concept stage of new product development (NPD). This paper assesses the extent to which the awareness that a product was co-created jointly by company professional designers and consumers affects observer consumers’ attitudes toward the product and the company. While earlier research has mainly emphasized the positive and desirable consequences of consumer participation in NPD, the present set of studies shows that labeling products as having been co-created is not always valuable; rather, it is dependent on the level of perceived complexity of the products. Design/methodology/approach The hypotheses are tested in four experimental studies using several categories of product complexity (low, medium and high). The data have been collected on young adult samples, measuring the participants’ perceptions of a firm’s innovation ability and product purchase intentions. Findings The results suggest that there are benefits at the corporate level (higher perceptions of innovation ability) to inform the market about consumer involvement, particularly when consumers and company professionals work together. The findings also indicate that product complexity plays a critical role in translating the perceptions of greater corporate abilities (innovation) in purchase intention, and it is particularly beneficial for low-complexity products. Originality/value The previous research has mainly focused on the impact of involving consumers in firms and participating consumers; however, it has neglected the role of observer consumers. This study adds to the innovation literature by showing that the value of learning about other consumers’ involvement in firm NPD is not universally beneficial and that product complexity is a critical boundary condition.

Download Full-text

Reinforcement Learning in Financial Markets

Data ◽

10.3390/data4030110 ◽

2019 ◽

Vol 4 (3) ◽

pp. 110 ◽

Cited By ~ 11

Author(s):

Terry Lingze Meng ◽

Matloob Khushi

Keyword(s):

Reinforcement Learning ◽

Financial Markets ◽

Transaction Costs ◽

Machine Learning Method ◽

Board Game ◽

Bid Ask Spread ◽

Exponential Increase ◽

Testing Data ◽

The Impact ◽

Forex Prediction

Recently there has been an exponential increase in the use of artificial intelligence for trading in financial markets such as stock and forex. Reinforcement learning has become of particular interest to financial traders ever since the program AlphaGo defeated the strongest human contemporary Go board game player Lee Sedol in 2016. We systematically reviewed all recent stock/forex prediction or trading articles that used reinforcement learning as their primary machine learning method. All reviewed articles had some unrealistic assumptions such as no transaction costs, no liquidity issues and no bid or ask spread issues. Transaction costs had significant impacts on the profitability of the reinforcement learning algorithms compared with the baseline algorithms tested. Despite showing statistically significant profitability when reinforcement learning was used in comparison with baseline models in many studies, some showed no meaningful level of profitability, in particular with large changes in the price pattern between the system training and testing data. Furthermore, few performance comparisons between reinforcement learning and other sophisticated machine/deep learning models were provided. The impact of transaction costs, including the bid/ask spread on profitability has also been assessed. In conclusion, reinforcement learning in stock/forex trading is still in its early development and further research is needed to make it a reliable method in this domain.

Download Full-text