Varieties of Transaction Costs-Williamson & Schmid
Varieties of Trans. Cost
|S (all could be grouped as market, adm., or status)||P|
(predict the future)
Labels--voluntary or required
Million $ celebrity endorsements
Rule of merchantability
Sell livestock by dressed carcass.
Cost plus contracts.
Kenyan coffee washing stations vs. Cameroon farmers washing......
"Instinct of workmanship...............
Boundaries of insurance pools.
(Individual vs. area yield as basis for calculating claims.)
If you can't afford the best medical care, you can't have any.
Less moral hazard.
Distribute costs of being wrong.
(Related to number of and access to parties.)
|Reasonable use vs Prior Approp.
Damages vs. injunction.
Class action rights.
Who gets the rent?
|Necessarily incomplete contracts.
Hostages and integrated firms.
Plantations or small farms.
Require farmers to sell to processor who also is input supply.
Integrated bank loans--
U.S. Bank for Co-ops.
Labor paid by piecework, salary, putting-out, etc.
Cooperatives (loyal owners)
|High cost technology.
Low per unit cost tech.
(Economizing or power)
Less excess capacity from investment duplication.
Degree of shirking.
(more in Period 26 on Labor)
Degree of opportunism.
\810\tr-cost.htm Oct., 1996