Reduction of Transaction Costs by Using Electronic Commerce in Financial Services

2011 ◽  
pp. 62-83
Author(s):  
Thomas Pfahler ◽  
Kai M. Grebe
Keyword(s):  
Electronic Commerce ◽  
Transaction Costs ◽  
Financial Services ◽  
Institutional Economics ◽  
Business Processes ◽  
New Institutional Economics ◽  
Future Developments ◽  
Current Trends ◽  
The One ◽  
Practical Level

This chapter introduces the Transaction Cost Approach as a means of analyzing specific transactions in financial services by using the theoretical framework of New Institutional Economics. It argues that transaction costs can be assessed and used to compare different business processes. Furthermore, these costs allow a detailed explanation why certain underlying technologies which form the basis for transactions become widely accepted whereas others do not prevail. The authors emphasize the relevance of this approach and its application to the field of electronic commerce both on a theoretical and practical level to document and to interpret current trends in this sector on the one hand, and to predict future developments on the other hand.

El Prestige: comparativa de los regímenes internacionales de responsabilidad civil

2019 ◽  
Vol 37 (3) ◽  
pp. 31
Author(s):  
Raquel Fernández González ◽  
Marcos Íñigo Pérez Pérez
Keyword(s):  
Institutional Economics ◽  
Geographical Area ◽  
New Institutional Economics ◽  
Rigorous Analysis ◽  
Judicial Process ◽  
Main Research ◽  
Civil Responsibility ◽  
The One ◽  
High Degree ◽  
The Prestige

The return of institutions to the main research agenda has highlighted the importance of rules in economic analysis. The New Institutional Economics has allowed a better understanding of the case studies that concern different areas of knowledge, also the one concerning the management of natural resources. In this article, the institutional analysis focuses on the maritime domain, where two large civil liability regimes for pollution coexist (OPA 90-IMO), each in a different geographical area (United States - Europe). Therefore, a comparative analysis is made between the two large regimes of civil responsibility assignment applying them to the Prestige catastrophe. In this way, the allocation and distribution of responsibilities in the investigation and subsequent judicial process of the Prestige is compared with an alternative scenario in which the applicable compensation instruments are governed by the provisions of the Oil Polution Act of 1990 (OPA 90), in order to establish a rigorous analysis on the effects that the different norms can have in the same scenario. In the comparative established in the case of the Prestige, where the responsibilities were solved very slowly in a judicial process with high transaction costs, the application of rules governed by the OPA 90 would not count with such a high degree of imperfection. This is so, since by applying the preponderance of the evidence existing in OPA 90 there would be no mitigation for the presumed culprits. On the other hand, the agents involved in the sinking would not be limited only to the owner, but also that operators or shipowners would be responsible as well. In addition, the amount of compensation would increase when counting in the damage count the personal damages, the taxes without perceiving and the ecological damage caused in a broad sense, damages not computable in the IMO.

Governing the Environment: the Intitutional Economics Approach

2009 ◽  
pp. 61-86
Author(s):  
Arild Vatn
Keyword(s):  
Transaction Costs ◽  
Environmental Governance ◽  
Institutional Economics ◽  
Specific Area ◽  
New Institutional Economics ◽  
Neoclassical Economics ◽  
Institutional Perspective ◽  
Institutional Structures ◽  
Plural Rationalities ◽  
Jel Classifications

- Analyzing environmental governance implies foremost to analyze institutional structures and their implications. In doing so, the present paper utilizes insights primarily from the tradition of classical institutional economics. The paper is divided in three. In the first part I describe the main features of the classical position and compare it briefly with that of neoclassical economics and the tradition of new institutional economics. In the second part I clarify what is considered the main aspects of governance as seen from an institutional perspective. In part three I move to the more specific area of environmental governance. The concept of resource regimes is defined. Moreover I analyze how different regimes influence which environmental problems appear and how they can be treated. I discuss how institutions influence the formation and articulation of knowledge and values, how they form and protect interests, how they influence the level of transaction costs and hence the possibilities for coordination, and finally how they form the motivations underlying human choices in concrete contexts. Given that all these variables are shown to be endogenous to the institutional system, the use of comparative analysis in the assessment of various governance options is emphasized.Keywords: classical institutional economics, interdependence, resource regimes, value articulation, interest protection, transaction costs, plural rationalities.JEL classifications: B52; Q50; D02; D70.

scholarly journals Gender and Transaction Costs in Use of Zero Grazing Net for Tsetse Fly and Trypanosomiasis Control in Stall Feeding Systems in Kenya

2017 ◽  
Vol 7 (3) ◽  
pp. 96
Author(s):  
Jared Isaboke Mose
Keyword(s):  
Transaction Costs ◽  
Institutional Economics ◽  
Survey Design ◽  
Sampling Technique ◽  
New Institutional Economics ◽  
Tsetse Fly ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Men And Women ◽  
Zero Grazing

Trypanosomiasis is a widespread constraint in livestock production, mixed farming and human health in Africa. Several technologies have been developed to ameliorate the effects of the disease but delivery of these technologies to farmers has been undertaken on trial and error basis without a proper strategy leading to more failure than success and wastage of scarce resources. The purpose of this paper was to carry out an analysis of transaction costs incurred in accessing and using insecticide treated net in tsetse and trypanosomiasis control among smallholder cattle farms in Busia County, Kenya. The study utilized cross–sectional survey design and was guided by the New Institutional Economics approach and utilized stratified and simple random sampling technique to get 211 respondents for the study. Data was collected by use of structured questionnaires and analyzed using descriptive and inferential statistics. Conjoint analysis results for zero grazing net showed that cost was the most important factor influencing farmers’ decision, accounting for 38.52% of the total while durability and availability each accounted for 25% and retreatability accounted for 10% of the decisions. Further t-test results showed that there were significant differences between men and women with respect to attribute scores (at 99 d.f. and alpha = 0.05%) suggesting that men and women face different transaction costs in accessing T&T control technologies. Therefore there is need for gender sensitive strategies in T&T technology design and dissemination. Tsetse fly and Trypanosomiasis control by use of low cost technologies such as insecticide treated zero grazing net should be promoted by government and other development partners. The net should be affordable, available at supply outlets close to farmers, long lasting and re-treatable for famers to take it up.

scholarly journals The impact of regulation governance on financial system efficiency: The importance of consumer behavior

2021 ◽  
Vol 11 (1) ◽  
pp. 80-93
Author(s):  
Alessandra von Borowski Dodl
Keyword(s):  
Financial Services ◽  
Institutional Economics ◽  
Financial System ◽  
New Institutional Economics ◽  
System Efficiency ◽  
Life Plans ◽  
Governance Effectiveness ◽  
Instrumental Values ◽  
The Impact ◽  
Theoretical Apparatus

This study focuses on the value structure that correlates improvements in the financial services consumer’s decision-making quality with the development of their autonomy. The discussion is based on the concepts of ceremonial and instrumental values, according to Bush (1987). We anchor our analysis on the premise that there is still room for enhancing the results within the National Financial System – NFS – by broadening the scope of initiatives on financial services consumers’ education and protection (von Borowski Dodl, 2020). Strengthening this perspective, we emphasize the consumer’s role as an agent and the relevance of taking decisions according to their life plans. The analysis is undertaken through the institutional literature lens, considering both schools of thought: Original Institutional Economics (OIE) (drawing on Tauheed, 2013a, 2013b) and New Institutional Economics (NIE) (focusing on North, 1990). From the conjunction of the theoretical apparatus and the applied analysis, we propose a governance policy within the NFS aimed at increasing its efficiency. Effective communication between stakeholders and consumers’ participation in the structuring of institutions – by publicly evincing their political power – hold the potential for promoting governance effectiveness. Additionally, although the approach taken focuses on the NFS, the diagnosis process carried out in this study can be easily reproduced in other contexts.

scholarly journals General Concept of Neo-institutional Measurements of Business Processes

2019 ◽  
Vol 11 (4) ◽  
pp. 28-80
Author(s):  
Arkadiusz J. Derkacz
Keyword(s):  
Process Management ◽  
Institutional Economics ◽  
Business Processes ◽  
Thought Experiment ◽  
Value Added ◽  
Daily Basis ◽  
General Concept ◽  
New Institutional Economics ◽  
Effectiveness And Efficiency

Abstract Objective: General concept of neo-institutional measurements of business processes is an approach developed by the author, which fits in with the practical search for appropriate methods and tools that would optimize effectiveness and efficiency of business process management. The objective of the following discussion is to prove the thesis that effectiveness of business processes that take place within a company depends on the quality of support of such processes that is included in the set of supporting factors, as well as on neo-institutional determinants of business processes. Methodology: In the article, the author used primarily long-term observations of the functioning of enterprises, critical literature analysis and thought experiment. Findings: The concept was based on long-term of author’s experience in business management and it was essentially grounded in the model of the new institutional economics. On the basis of critical analysis of the literature and with the use of empirical research results from different industries and countries, it defines four hypotheses, which make ground for the concept in question. These are: hypothesis of rational change of condition, hypothesis of expected determinants of business processes, hypothesis of rational determinants of business processes and intensity of impact hypothesis. Value Added: The concept presents a new holistic and behavioral method for business processes analysis. Recommendations: The general concept of neo-institutional measurements of business processes may become a new economic approach concerning the issues of effectiveness and efficiency of business processes, but also it may become the ground for creation of a new catalogue of recommendations for managers, who, on a daily basis, make difficult managerial decisions.

scholarly journals Barriers to exit encountered by small farms in light of the theory of new institutional economics

2018 ◽  
Vol 64 (No. 6) ◽  
pp. 277-290 ◽  
Author(s):  
Satola Lukasz ◽  
Wojewodzic Tomasz ◽  
Sroka Wojciech
Keyword(s):  
Transaction Costs ◽  
Eastern Europe ◽  
Structural Changes ◽  
Central And Eastern Europe ◽  
Institutional Economics ◽  
Rent Seeking ◽  
New Institutional Economics ◽  
Financial Resources ◽  
Small Farms ◽  
Production Resources

For at least 25 years, processes involving structural changes have been growing more and more intense in the countries of Central and Eastern Europe, with these processes including a decline in the number of small farms. The main aim of this paper is to present the mechanisms involved in, as well as barriers to and costs preventing the exit of farms from agriculture, including those that make it difficult to transfer production resources which are being released to other companies. This research takes the form of an overview and is based on the output of new institutional economics, and on transaction cost and rent-seeking theories in particular. The most frequent difficulties encountered in the process of exit from farming include low profitability of production and the shortage of capital among potential buyers, while the lack of sellers’ financial resources and the necessity of incurring expenses related to preparing and finalising the sale of resources held by them (the actual transaction costs related to closing down farms) are frequently overlooked. The most important barriers preventing the complete liquidation of farms are the inherent transaction costs categorised as expenses, as well as the emotional costs and costs of alternatives, which are difficult to evaluate and estimate. The following notions are particularly helpful in explaining barriers to exit from farming: the concept of transaction costs and rent-seeking theory, which are both a part of the stream of thought of new institutional economics.

scholarly journals Coexistence of Cooperative Models as Structural Answer to Lock-Ins in Diversification Pathways: The Case of the Walloon Dairy Sector

2020 ◽  
Vol 4 ◽  
Author(s):  
Véronique De Herde ◽  
Philippe V. Baret ◽  
Kevin Maréchal
Keyword(s):  
Institutional Economics ◽  
Transition Process ◽  
New Institutional Economics ◽  
Product Diversification ◽  
Added Value ◽  
Economic Agents ◽  
Dairy Cooperatives ◽  
The One ◽  
Hybrid Actors ◽  
Cooperative Models

Drawing on an analysis of the Walloon dairy sector, this paper aims at bringing novel insights on the coexistence issue in agrifood transition studies. Whereas most studies explore the coexistence of farm models, our study focuses on value chains, in particular on cooperatives. In the Walloon Region, new dairy cooperatives emerged, as substitute or as complement to the incumbent vertically integrated dairy cooperatives. This paper focuses on the coexistence of dairy cooperative models as enabler of transition toward product diversification. Dairy cooperatives are hybrid actors: economic agents on the market on the one hand, structure of collective agency on the other hand. Williamson's framework of New Institutional Economics acknowledges that the allocation of resources by cooperatives depends on governance processes and on the wider institutional context in which the cooperatives evolve. Within the broader frame of the Multi-Level Perspective, this approach allows to consider the socio-technical coherence in which the cooperatives evolve, the effects of this coherence on their pathways of development, and the complementarity of the cooperative models. This qualitative analysis builds on semi-directed interviews with actors of the Walloon dairy sector. The results outline distinctions between the new cooperative models and mainstream dairy cooperatives in market approach, definition of milk quality, distribution of added value, governance, and interactions with partners. Both models evolve within a distinct socio-technical coherence, holding, in the case of the mainstream dairy cooperatives, lock-ins to diversification related to the relationship with the farmer-members and the milk they produce in the industrial vertically integrated model. The new cooperative models circumvent these lock-ins through de-integration and externalization of initiatives, remuneration, and risk. They allow specific groups of actors—still related or unrelated to the mainstream dairy cooperative—to explore new market pathways in accordance with their potential, and to mutually agree on criteria qualifying milk. This research draws the picture of a possible reconfiguration of the dairy landscape toward a more diversified ecosystem of actors and invites to consider structures of governance in collective action as a cornerstone issue, because of their significant role in terms of enablement, coexistence, and complementarity throughout the transition process.

scholarly journals Let’s Break the Law: Transaction Costs and Advance Rent Deposits in Ghana’s Housing Market

2018 ◽  
Vol 7 (2) ◽  
pp. 333-354
Author(s):  
Kofi Oteng Kufuor
Keyword(s):  
Transaction Costs ◽  
Housing Market ◽  
Institutional Economics ◽  
Financial Burden ◽  
New Institutional Economics ◽  
The Law

A feature of the Ghana private rental accommodation market is that landlords usually demand advance rent of, in some instances, up to 5 years before signing a tenancy agreement. This is in violation of the 1963 Rent Act and recent initiatives are in the direction of curing this problem in the interest of protecting prospective tenants. However while advance rent is a financial burden this is offset by transaction costs in the housing market. Hence, in this paper and influenced by New Institutional Economics, I argue that it is possible for tenants and landlords to continue to bargain outside the shadow of the law to secure mutually beneficial tenancy agreements.

Governance in der Waldwirtschaft | Governance in forest economy

2003 ◽  
Vol 154 (2) ◽  
pp. 42-50 ◽  
Author(s):  
Martin Hostettler
Keyword(s):  
Transaction Costs ◽  
Basic Concept ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
Added Value ◽  
Governance Structures

The Swiss forest economy has been trying for many years to improve logistics in the chain of the added value of wood. This work addresses necessary reforms to the system within the context of new institutional economics. The basic concept is explained, transaction costs of markets and hierarchies are presented systematically and the forms of governance structures outlined. The example of Swiss forest economy shows that fruitful points of departure can be developed aimed at reforming the vertical and horizontal relations between enterprises, as well as internal questions of governance. A pre-condition to achieve more efficient governance in forest economy is the reduction of restrictive institutions, whether formal or informal.

scholarly journals Gender and Transaction Costs in Crush-Pen Spraying for Trypanosomiasis Control in Kenya

2017 ◽  
Vol 9 (11) ◽  
pp. 144
Author(s):  
Jared Isaboke Mose
Keyword(s):  
Transaction Costs ◽  
Institutional Economics ◽  
Survey Design ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
New Institutional Economics ◽  
Tsetse Fly ◽  
Group Affiliation ◽  
Cross Sectional Survey ◽  
Cross Sectional

Trypanosomiasis a widespread constraint in livestock production, mixed farming and human health in Africa has necessitated development of several technologies to ameliorate the effects of the disease. However delivery of these technologies to farmers has been undertaken on trial and error basis without a proper strategy leading to more failure than success and wastage of scarce resources. The purpose of this paper was to carry out an analysis of transaction costs associated with the use of communal crushpen in tsetse fly and trypanosomiasis control among smallholder cattle farms in Busia County, Kenya. The study utilized cross-sectional survey design and was guided by the New Institutional Economics approach. Stratified and simple random sampling technique was adopted to get 211 respondents. Data was collected by use of structured questionnaires and analyzed using descriptive and inferential statistics. Conjoint results showed that price was the most important factor influencing the farmers’ decision for crushpen use, accounting for 55.58%; distance accounted for 20.7% while trust accounted for 14.6% and group affiliation 8.7%. It is recommended that crush pens should be close to farms, managed by trustworthy people preferably belonging to farmers’ groups and charges levied for spraying the cows should be within the reach of farmers. The necessity of developing affordable Tsetse fly and Trypanosomiasis control methods in the war against Tsetse and Trypanosomiasis is supported by this study.

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