Transaction Costs
(6 Types)



  • Search Costs: Buyser and sellers finding each other


  • Information Costs: Learning about products/services, the basis for their costs/value, profit margins, quality, finacial condition, and legitimacy of buyer/seller.


  • Bargaining Costs: Buyser/Seller setting terms of sale, meetings, phone calls, faxes, emails, data exchanges, legal.


  • Decision Costs: Evaluating terms of byuer/seller, opportunity costs, internal buerocracy, policies, executive approval, etc.


  • Policing Costs: Handling descrepancies, fraud, theft, ambiguity


  • Enforcement Costs: Buyser/Sellers ensuring unsatisified terms are remedied.




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