Abstract
The article deals with essence and classification of transaction costs, their distinctive features in case of innovative production. Transaction costs classification by necessity criterion is presented, components of information searching costs and negotiation costs as the most relevant groups of innovative production transaction costs are considered. The mathematical model of negotiations is suggested. This model defines the optimal number of negotiation rounds, determines exact total value of the contract with respect to transaction costs, and estimates the amount of transaction costs for each round. This model has practical significance and it can be used by innovative firm at the stage of commercialization. We conduct a computer experiment for finding the optimal number of rounds by minimal contract value criteria. Our results can be directly extended to real-life negotiations.
Highlights
Examination of transaction costs essence and their estimation draw great attention of scientists and experts
It is clear that difficulties in definition and estimation of transaction costs increase in case of innovative enterprise
We have developed a mathematical model of negotiations, which allows determining the number of rounds of negotiations, total value of the contract, and value of transaction costs for each round
Summary
Examination of transaction costs essence and their estimation draw great attention of scientists and experts. It can be explained by two reasons. Transaction costs are much harder to estimate and difficult to manage since they depend on environmental parameters. Management decisions affect this type of costs not so obviously as on operating costs. It is clear that difficulties in definition and estimation of transaction costs increase in case of innovative enterprise. We explore distinctive features of transaction costs of innovative enterprise and propose a model to determine the optimal contract value to increase commercialization efficiency
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