scholarly journals Economic Considerations of Legal Delimitation: Evidence from Judicial Verdicts in Bangladesh Courts

2021 ◽  
Vol 13 (3) ◽  
pp. 115-135
Author(s):  
Mohammad Dulal Miah ◽  
Mohammed Usman ◽  
Yasushi Suzuki
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Important Implication ◽  
Social Cost ◽  
Law And Economics ◽  
Transaction Cost Theory ◽  
Judicial Decision ◽  
Judicial Decisions ◽  
New Information ◽  
Economic Considerations

The literature on law and economics argues that economic considerations have an important implication for consistent and efficient legal practices. In line with this tradition, this paper aims to analyse legal verdicts through the lens of transaction cost to ascertain if judicial decision takes social cost into account. In so doing, the research draws upon the literature of transaction cost theory, which examines the implications of transaction cost for legal verdicts. Data for the analysis consist of legal verdicts collected from Bangladesh. The paper shows that judicial decisions are influenced by economic matters, especially social and transaction costs. When the issue of these costs is clear, judges take this into consideration in deciding who should own what rights. This research contributes to the literature of law and economics by providing new information, which is believed to help regulators, policymakers, and legal practitioners in deciding value-creating property rights.

Transaction Costs and Information Systems: Does IT Add Up?

2006 ◽  
Vol 21 (3) ◽  
pp. 195-202 ◽  
Author(s):  
Antonio Cordelia
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Information And Communication Technology ◽  
Information Flow ◽  
Communication Technology ◽  
Flow Distribution ◽  
Transaction Cost Theory ◽  
Design And Implementation ◽  
Is Research ◽  
Information And Communication

Transaction cost theory has often been used to support the use of information and communication technology (ICT) to reduce imperfection in the economic system. Electronic markets and hierarchies have repeatedly been described as solutions to inefficiencies in the organisation of transactions in complex and uncertain settings. Far from criticising this assumption, this paper highlights the limits associated with this application of transaction cost theory that has been prevalent in IS research. Building on the concepts first proposed by Ciborra, the paper argues that information-related problems represent only some of the elements contributing to transaction costs. These costs also emerge due to the interdependencies among the various factors contributing to their growth. The study of the consequences associated with ICT design and implementation, grounded in transaction cost theory, should consider the overall implication associated with the adoption and use of ICT and not only the direct effect on problems associated with information flow, distribution, and management.

To affiliate, or not to affiliate. Transaction costs and governance choices in luxury hotels in Germany

2019 ◽  
Vol 20 (3) ◽  
pp. 272-287
Author(s):  
Matteo Pedrini ◽  
Chiara De Bernardi
Keyword(s):  
Regression Analysis ◽  
Transaction Costs ◽  
Transaction Cost ◽  
Transaction Cost Theory ◽  
Luxury Hotels ◽  
Entry Strategies ◽  
Property Owners ◽  
Luxury Hotel ◽  
Governance Choices ◽  
Hotel Chain

This paper examines the choice of affiliation or no affiliation to a large hotel chain from the viewpoint of luxury hotel property owners in Germany. Grounded in transaction cost theory, this study identifies how uncertainty and frequency influence the owners’ choice of unaffiliated operation and affiliation. The study augments the traditional governance literature in the field of the hotel by shedding light on the market/hierarchy decision of property owners rather than on the market entry strategies of international hotels firm. Through a multiple regression analysis on a sample of 122 existing five-star hotels in Germany, this study provides new empirical evidence that a frequent contract conclusion with the same hotel chain and a “hotel unrelated” background of the owner increases the likelihood of affiliation. In contrast to what transaction cost theory traditionally predicts, our results reveal that uncertainty is not influencing the owners’ market/hierarchy decision.

A Coda to Coase

1997 ◽  
Vol 56 (2) ◽  
pp. 275-283
Author(s):  
Matthew H. Kramer
Keyword(s):  
Transaction Costs ◽  
Social Cost ◽  
Law And Economics ◽  
Classic Article

As anyone even noddingly familiar with law-and-economics can attest, the name of Ronald Coase has become associated with the vision of a world that is free of transaction costs. Such an association derives largely from Coase's classic article, “The Problem of Social Cost”. However, as should be recognised by anyone who peruses that article, its author's chief concern lies in taking account sustainedly of the presence and implications of transaction costs.

scholarly journals Axiomatic Formulation of the Optimal Transaction Cost Theory in the Legal Process Through Cobb-Douglas Optimization

2021 ◽  
Vol 14 (3) ◽  
pp. 385-389
Author(s):  
Kwadwo Osei Bonsu
Keyword(s):  
Transaction Costs ◽  
Utility Function ◽  
Transaction Cost ◽  
Hessian Matrix ◽  
Legal Framework ◽  
Social Utility ◽  
Transaction Cost Theory ◽  
Optimal Parameters ◽  
Legal Process ◽  
The Social

Abstract Subject and purpose of work: This paper uses Cobb-Douglas optimization to formulate an optimal transaction cost algorithm within the constraint of a generalized legal framework. Materials and methods: The author has adopted a Lagrangian approach to formulate the social utility function, then, from a set of legally allowed strategies established the Karush-Kuhn-Tucker conditions for the legal game so as to find the optimal parameters within the social utility function. Finally, the optimal transaction cost algorithm was developed. Results: The Bordered Hessian Matrix from the partial differentials of the social utility function showed that there is a particular parameter within the social utility function which describes the optimal transaction cost. An adjustment of this parameter is essential in mechanism design for legal games. Conclusions: The author has shown how transaction costs influence the set of strategies played by players in a legal game, and has described the essence of a social utility function and how it can be optimized.

Blockchain’s Impact on Accounting and Auditing: A Use Case on Supply Chain Traceability

2021 ◽  
Author(s):  
Manlu Liu ◽  
Ashok Robin ◽  
Kean Wu ◽  
Jennifer Xu
Keyword(s):  
Supply Chain ◽  
Transaction Costs ◽  
Transaction Cost ◽  
Information Quality ◽  
Use Case ◽  
Transaction Cost Theory ◽  
Future Studies ◽  
Business Transactions ◽  
Blockchain Technology ◽  
Potential Impact

We use the transaction cost theory, originally proposed by Coase (1937), as a theoretical framework to examine the potential impact of the blockchain technology on accounting and auditing processes in terms of information timeliness, information quality, and auditing costs. Since a blockchain enables recording, tracking, and managing business transactions and assets of firms, it offers natural advantages to accounting and auditing processes, and has the potential to lower various transaction costs. A use case on a supply chain of food products is presented to illustrate how a blockchain can be used to trace the movement of goods and record the related transactions. Subsequently, building on this scenario, we use the transaction cost framework to generate propositions related to accounting and auditing that can be empirically tested in future studies as data become available.

How cultural distance affects the formation of international strategic alliance – an explanation of the transaction costs theory

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ming Ning Xiong ◽  
Tao Wang ◽  
Peng Zhao
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Strategic Alliances ◽  
Strategic Alliance ◽  
Cultural Distance ◽  
Transaction Cost Theory ◽  
Alliance Formation ◽  
Content Type ◽  
Underlying Mechanisms ◽  
The Impact

Purpose Based on the transaction cost theory, this paper aims to investigate the impact of cultural distance on international strategic alliance formation and its underlying mechanisms. Design/methodology/approach This paper uses the investment of foreign firms in the Chinese Venture Capital market as an empirical background, Obtaining VC data from Zero2IPO Private Equity, CVsource Investment Database (2001–2015). This paper chooses the Logit regression method, according to Lind’s three-step method to test the inverted U-shaped relationship. Findings The empirical analysis of foreign venture capital firms invested in China revealed that there is an inverted U-shaped relationship between cultural distance and the possibility of international strategic alliances. This relationship is the result of two opposing mechanisms, which are the need and the feasibility of international strategic alliances. In addition, this study further examined the moderating effects of social embeddedness and social reputation, revealing the boundary effects on the complex relationship between cultural distance and possible international strategic alliance formation. Originality/value This study focuses on cultural difference, which is a key factor leading to a firm’s transaction costs. Based on the transaction cost theory, this paper investigates the impact of cultural distance on international strategic alliance formation and its underlying mechanisms.

scholarly journals Explaining agro-industrial contract breaches: the case of Brazilian tomatoes processing industry

2007 ◽  
Vol 45 (4) ◽  
pp. 899-920 ◽  
Author(s):  
Decio Zylbersztajn ◽  
Lygia B. Nadalini
Keyword(s):  
Panel Data ◽  
Asymmetric Information ◽  
Property Rights ◽  
Transaction Costs ◽  
Transaction Cost ◽  
Transaction Cost Theory ◽  
Public Enforcement ◽  
Processing Industry ◽  
Limited Dependent Variable ◽  
Brazilian Northeast

Three hundred small tomato growers located in Brazilian northeast states, supplied a processing industry. In view of the large number of contract hazards and weak enforcement of clauses, managers have decided to move to the Midwest, where a reduced number of larger farmers have been contracted. The industry blamed high transaction costs due to the weak mechanism of public enforcement of property rights. The industry blamed some farmers of selling the product at the market for fresh consumption. Also, farmers blamed the industry for taking advantage of asymmetric information related to quality. This study presents an analysis of contract architecture and an evaluation of effects of transaction costs related variables on the likelihood of contract breaches. A panel data study with 1,523 observations and limited dependent variable models has been formulated to test hypothesis based on transaction cost theory. Results show that opportunism and the absence of courts guarantees of property rights precluded the possibility of achieving a stable contract relationship in the region.

scholarly journals Contemporaneous financial intermediation

2021 ◽  
Author(s):  
Markus Merz
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Financial Intermediation ◽  
Financial Sector ◽  
Transaction Cost Theory ◽  
Roles And Responsibilities ◽  
Cross Border ◽  
Distributed Ledger ◽  
Distributed Ledger Technology ◽  
Share Data

AbstractDigital innovations in banking and payments recently have garnered a great deal of attention. Specifically, distributed ledger technology (DLT) has the potential to fundamentally change the roles and responsibilities of stakeholders in the financial sector. DLT is a novel and fast-evolving approach to record and share data, e.g., payment transactions, among members of a decentralized network. Using transaction cost theory, the paper examines how DLT will change the cross-border payment infrastructure. DLT can reduce the overall transaction costs potentially resulting in the disappearance of correspondent banks.

scholarly journals Transaction Costs in Planning Literature: A Systematic Review

2021 ◽  
pp. 088541222110620
Author(s):  
Sina Shahab
Keyword(s):  
Systematic Review ◽  
Transaction Costs ◽  
Transaction Cost ◽  
Institutional Economics ◽  
Empirical Studies ◽  
New Institutional Economics ◽  
Transaction Cost Theory ◽  
Planning Systems

“Transaction costs,” as a well-established theory in New Institutional Economics, has been used to explain and analyze various planning matters for about 30 years since its introduction to planning literature. However, there is no study on how planning-related studies have utilized the theory. This paper conducts a systematic review that aims to develop a better understanding of how transaction-cost theory is used in planning literature. The review shows that while potential contributions and implications of transaction costs have been conceptually discussed in planning literature, the empirical studies have remained limited, particularly concerning the magnitude of such costs in planning systems.

scholarly journals The bullwhip effect in Brazilian supply chain of organic products: an analysis from the perspective of transaction cost theory

2019 ◽  
Vol 10 (3) ◽  
pp. 1015
Author(s):  
Paolo Edoardo Coti-Zelati ◽  
Mauricio Jucá de Queiroz ◽  
Davi Lucas Arruda de Araújo
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Strategic Management ◽  
Transaction Costs ◽  
Conceptual Model ◽  
Transaction Cost ◽  
Bullwhip Effect ◽  
Transaction Cost Theory ◽  
Chain Management ◽  
Organic Products

This paper deals with the to the supply chain strategic management of organic products. The objective of this study is to propose a model that integrates the concepts of supply chain management (SCM), transaction costs theory (TTC) and bullwhip effect in supply chain of organic products generating propositions that will direct future empirical research. Therefore, this paper proposes that the SCM and TTC can contribute in reducing the distortion of perception of demand along the supply chain of organic products. A conceptual model relating the three variables studied was elaborated and three theoretical future empirical investigations to propositions in order to solve the problem of the bullwhip effect, namely the distortion of perception of demand along the supply chain of organic products.

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