Decrease In Transaction Costs Research Articles

Personhood Global Whispers: Ethical Echoes of Decentralization?

This article explores the ethical dilemmas propelled by a significant shift in the allocation of trust and intelligence due to blockchain technology and AI, resulting in a notable decrease in transaction costs. The ethical and political implications of democratizing the resulting productivity gains are noteworthy, and while the pie is expanding, how its slices are distributed remains an open question. Enter Worldcoin, an innovative worldwide initiative that creates an identity system based on proof of personhood and zero-knowledge proofs (ZKP) to provide everyone with a distinct and anonymous "World ID. Using the author's “cyberethics-mix" framework, this paper examines the possible implications of such a system concerning data's protection, ownership, accuracy, and accessibility, underscoring the ethical significance of a political approach emphasizing inclusivity and sustainability through digital decentralization.

Categorizing shared photovoltaic business models in renewable markets: An approach based on CANVAS and transaction costs

Shared Photovoltaic (PV) business models enable a broader percentage of consumers to benefit from renewable energy because installation and transaction costs are significantly decreased. Designing these shared and community-based business models can contribute to help countries achieve emission reduction targets, particularly in developing countries. A systematization in different categories of how these business models can improve the awareness of opportunities and barriers to such models, including the identification of potential models is yet to be explored in a specific market. This paper proposes such categorization and discusses different shared PV business models observed in this sector, discussing the main similarities and differences of each one based on the CANVAS business model methodology. Further, this paper analyzes these categories in terms of how the decrease in transaction costs from the consumers’ perspective would help to deliver value. Finally, we demonstrate the proposed categorization to existing models in Brazilian and Indian markets, defining which business model categories are more adherent to this market. Moreover, we discuss possible innovative models yet to be applied to these developing countries and barriers to be overcome. It was identified that major existing business models are feasible for both India and Brazil, however, regulatory hindrances needs to be addressed beforehand.

Менеджмент трансакційних витрат підприємств

The essence and role of transaction costs are analyzed; it is shown that their share in enterprises is significant. Transaction costs, in particular, are defined as costs in the field of exchange related to acts of sale, transfer of property rights, emphasizing that they are not directly related to the production process of enterprises, but to organizational issues of their activities. Modern business conditions lead to an increase of transaction costs, associated with an expansion of the range of counterparties, a continuous increase in information flows, specific costs depending on ownership factors, etc. Trends in growth of such costs at domestic enterprises were identified and reasons for their high level were given. Classification of transaction costs of enterprises is presented. Key factors that complicate the control and minimization of transaction costs are highlighted. Examples of hidden transaction costs are given. Relationship between such costs and the value creation chain of enterprises is described, and it is shown that not all groups of transaction costs are related to the stages of product creation. Examples of impact of these costs on a production process are presented. In general, increase in the scale of enterprises' activities due to the addition of related industries to their composition can lead to a decrease in transaction costs. On the other hand, due to the increase in a size of the enterprise and the complexity of its structure, the costs of its general management are increasing. The optimal size of the enterprise can be reached when the savings from the reduction of transaction costs associated with the growth of the enterprise will become equal to the additional costs of managing it. It is shown that application of the proposed measures will ensure reduction of transaction costs and will positively affect the level of expenses of enterprises in general and contribute to the growth of the efficiency of their activities.

Remedies to the Irreversibility of Smart Contracts in Colombian Private Law

Abstract The application of blockchain technology to contractual activity has led to a decrease in transaction costs, but also an enormous potential cost of judicial solutions that order reversal of the effects of smart contracts. This research addresses solutions, both from the perspective of updating the unforeseen theory and from clauses that are introduced to the legal smart contracts to allow reducing the costs associated with judicial decisions that declare an anomaly in the contracts.

Assessing the impact of digital technologies on transaction costs of firms

Subject. The article considers measuring the impact of digital technologies on firms' transaction costs. Objectives. The purpose is to review the use of digital technologies by firms in marketing activities, when choosing counterparties, concluding and executing contracts, and to analyze the impact of information technology on transaction costs of organizations. Methods. We employ methods of logical analysis, synthesis, and theoretical generalization. Results. We reviewed scientific articles on methods of assessing transaction costs of firms, highlighted three main groups of methods proposed in the academic literature, conducted a survey of owners and directors of firms in Russia to study the use of digital technologies in the marketing activity of firms, in negotiation and execution of contracts, and in ensuring their execution by counterparties. The empirical study revealed the relationship between the increase in firms' spending on digital technologies and the decrease in transaction costs. We offered and tested a formula for estimating the elasticity of the impact of digital technology costs on the corresponding transaction costs of organizations. Conclusions. The study confirmed the hypothesis that firms are increasing the use of digital technologies to reduce their transaction costs. This enabled to propose and verify the said formula.

Supply chain integration as a form of vertical interaction in the theory of the firm

The form of organization and performance of both the entire supply chain and the markets at its individual links are determined by the structure and mechanisms of vertical interaction of its participants. Most existing approaches to explaining such forms emphasize the differences between hierarchy, market and hybrid contracting. This study specifies the forms of vertical interaction in supply chains and determines the factors of their choice. Supply chain integration on a par with vertical restrictive agreements is proposed to be considered as a form of hybrid contracting. On the basis of the theory of the firm the question of the choice of the form of vertical interaction is considered. It is shown that supply chain integration leads to a fundamental transformation of market multilateral relations into bilateral supply contracts and to the formation of transactional-specific assets which ensure the sustainability of this form of vertical interaction. As a result, compared to market interactions, there is a decrease in transaction costs while control costs increase, so supply chain integration occupies an intermediate place between the market and vertical restrictive agreements.

Effect entrepreneurship on innovation behavior and institutional environment: based on a comparative analysis

To establish a basic model to evaluate the effect of entrepreneurship upon the organizational innovation, applying transaction costs and intellectual property right protection as institutional moderating variables. By collecting data from GEM’s investigation, the dynamic connection between the entrepreneurship and innovation decision was explored and the differences in terms of innovation’s motivations were statistically compared between the North and emerging countries. The entrepreneurship exerted positive effect on entrepreneurs’ innovation decision. The decrease of transaction costs had positive moderating effect. With subsequent comparative analysis, the transaction costs exerted larger moderating effect, whereas intellectual property right protection had negative moderating effect in emerging countries. Individualized policy implications should be proposed according to the specific situations in emerging countries, which include adapting regional incubator, building information communication platform as well as applying appropriate intellectual property right protection.

A neo-institutional analysis of alternative land registration systems in Tanzania: The cases of Babati and Iringa districts

Despite the availability of new technical tools and organizational adaptations to improve the efficiency and quality of land registration processes, few insights exist on how effective such reforms are. This article takes a closer look at such alternatives by carefully examining how they differ from existing processes and by assessing to which extent these truly enhance land tenure security. The investigation relies on a neo-institutional analysis of land administration processes. This analytical choice zooms in to institutional practices, behavior and effects. We chose to examine empirically non-state-led land formalization processes in the Babati and Iringa districts in Tanzania. The observed and aggregated findings on perceptions, beliefs and values indicate that institutional changes have indeed occurred, but that these changes with new technologies have not significantly led to a fundamental decrease in transaction costs and improvement in tenure security. Instead, costs have not persisted in monetary value but in terms of uncertainty due unrealized benefits of formalization. Most tenants with so-called Certificates of Customary Right of Occupancy (CCRO) have less benefited from accessing loans, formalization has not freed rural people from land disputes and still people have immense trust in customary practices. Explanatory factors reside around low value of produced CCROs, bank’s mistrust of CCROs because they not linked to national land management systems. Also, approaches of formalization apart from being replacement in nature, they are donor dependent and are in conflict with customary perceptions of security of land tenure systems. These outcomes suggest that the reforms have indeed only established new institutional forms but that these are not sustained nor integrated in customary procedures. Land tenure security is therefore not sufficiently improving. These findings call for a more detailed evaluation of the assumed benefits of the technological and organizational set-ups and of the assumed causal relation between land registration and tenure security.

ВЛИЯНИЕ ИНФОРМАЦИОННО-УПРАВЛЯЮЩИХ СИСТЕМ НА ЭКОНОМИЧЕСКУЮ ДЕЯТЕЛЬНОСТЬ ОРГАНИЗАЦИИ

Organizations of various types of business tend to apply and implement management information systems designed for corporate resource management, interaction with clients, and supply chain optimization. The influence of management information systems on an organization's business is not of apparent significance in terms of the expected effect of their implementation. The extent of the effect of such systems on economic indicators of an organization has an ambiguous nature. The business performance of organizations, not paying careful attention to the justification of the processes of purchasing and exploitation of management information systems, usually, is significantly lower than their capabilities. The article is dedicated to the study of cost efficiency sources amid the implementation of a management information system, mechanisms of economic effect formation, and methods of cost-benefit analysis. The impact of organization's ability to collect and process information on the efficiency of its businesses performance and cost efficiency is considered. The article describes major factors, influencing the implementation efficiency, and substantiates the dependences of calculations of the expected increase in profit from the use of assets and a decrease in transaction costs when introducing management information systems in an organization. The possibility of unambiguous determination of the economic efficiency of management information systems with the appropriate management organization has been proved.

İSLAM ÜLKELERİNDE EKONOMİK ÖZGÜRLÜĞÜN GİRİŞİMCİLİK ÜZERİNDEKİ ETKİSİ

The level of economic freedom which is expressed as institutions and policies based on market economy is one of the most significant indicators of entrepreneurial activities since the increase in economic freedom has caused a decrease in transaction costs preventing the entrepreneurial activity. The aim of this study is to analyze the effect of economic freedom on entrepreneurship in Islamic countries by using the data belonging to years between 1995 and 2019. In the study, self-employment rate has been used as entrepreneurial criterion; gross domestic product per capita, money supply, import and inflation have been used as the indicators of the entrepreneurship; economic freedom index presented by The Heritage Foundation and its 9 subcomponents out of 12 (property rights, government integrity, government spending, tax burden, business freedom, monetary freedom, trade freedom, investment freedom and financial freedom) have been used as the economic freedom criterion. According to the findings of this study, entrepreneurship has been affected positively by economic freedom and property rights, government integrity, government spending, monetary freedom, investment freedom and financial freedom and negatively by tax burden and trade freedom.

Contributions to inflation after euro adoption: the case of Central and Eastern European countries

Motivation: Based on theory, the introduction of a single currency should cause a decrease in transaction costs, which in effect should lead to a drop in consumer prices. However, there is a common perception that the introduction of the single currency is conductive to excessive price increases with this providing a sufficient justification against the introduction of the euro. People subjectively estimate information on a certain economic phenomenon, and that estimation may not necessarily correspond to facts. The discrepancy between perceived inflation and its actual level in the new euro area member states may result from different inflation levels among varying consumption categories.Aim: The aim of the presented research is to assess the impact of the introduction of the single currency (euro) on the inflation rate in a breakdown by COICOP category in 5 countries of Central and Eastern Europe, which in the years 2007–2015 adopted the common EU currency.Results: The research was carried out using the comparative method. The inflation indicators were used in 12 categories of classification of individual consumption by purpose (COICOP). The research was conducted using a medium-term perspective: from the five years before the adoption of the euro to five years after its implementation. After the adoption of the euro, prices grew faster than the general indicator of inflation in two COICOP categories. The first of them was restaurants and hotels; while the second was alcoholic beverages, tobacco and narcotics. In the case of other inflation categories, no regularity was observed. In all investigated Central and Eastern European countries, the medium-term HICP inflation was lower after euro adoption than before.

BANKING SECTOR DEVELOPMENT AND ECONOMIC GROWTH IN WESTERN BALKAN COUNTRIES

Since the collapse of the centrally-planned system, countries in transition have walked a rough road to recovery. Almost instantly, national economies opened to global markets, enforced price liberalization measures, combined with macroeconomic stabilization policies and structural reforms. At the beginning of the 1990s, they experienced a fall in output, accompanied by other deteriorating features, such as high unemployment, emigration, high level of informal economy, deteriorating balance of payments, growing debt, wars, ethnic problems etc. The annual real GDP per capita growth of most transitive economies during the early periods of transition (1990-1993) was. A major caveat in assessing the depth of the output fall is that it refers to official estimates and thus ignores the shadow economy or informal sector, which has grown very rapidly in the early transition years. The South-East European countries, additionally affected by the wars of Yugoslav secession, recorded notably larger output losses at the beginning of the transition than Central-East European Countries, reaching a negative peak of -20%, and an average decline of 10.90%, but exhibited high growth rates in the mid and late 1990s, as hostilities ended, macroeconomic stabilization took hold and structural reforms advanced. The speed of recovery differed significantly across countries, particularly in the period 1994-2001.This is particuly case in countries from Western Balkan where they were faceing and still face many economic problems like as prolonged recessions, due to differing reform progress, varying impact of the war, unemployment, poverty, low living standards and inflation. Thus, these countries always try to increase their national income and hence create more jobs with maintained economic growth. Bearing this in mind it is essential the countries from this region consider steps towards financial liberalization and deregulation which will help open the borders for capital flows and attract new investments. In fact, financial and banking sector development leads to the increase in economic growth in any economy through financing economic development.Banking system is important to the economic growth through its ability in gathering and attracting deposits from savers. Secondly, its role in providing loans to encourage investment and production. Thirdly, its ability in creating economic expansion to the most of economic sectors such as; Agriculture, industry and trade sector. Fourthly, its intermarry role between savers and borrowers. Finally, banking industry provide entrepreneurs with required loans in order to finance the adoption of new production techniques. This paper examines the question whether in 6 countries from Western Balkan the banking sector influences economic growth. The empirical investigation was carried out using fixed effect model. In this study we use two measures for the level of banking development bank credit to private sector in relation to GDP (private credit) and interst margin. Namely, private credit still appears a superior option to the pure ratio of broad money to GDP used in some studies, because it excludes credits by development banks and loans to the government and public enterprises. We expect positive relationship between private credit and economic growth. The second variable is interest margin is likely a good estimator for efficiency in the banking sector as it describes transaction costs within the sector. If the margin declines due to a decrease in transaction costs, the share of savings going to investments increases. As growth is positively linked to investment, a decrease in transaction costs should accelerate economic growth. The results suggests that credit to the private sector is positively and significant, while interes margin is negatively and insignificant related to economic growth.

Farmer producer organisations: Innovative institutions for upliftment of small farmers

Need of Farmer Producer Organizations (FPO) was felt to overcome the problems of unorganized small farmers who lack access to resources and services. FPOs emerged as an interface between small farmers and the external world by providing forward and backward linkages, giving them required voice, market access, bargaining power, economy of scale and better prices. Among different tangible and intangible benefits, marketing related benefits like access to different market channels, decrease in risk, decrease in transaction cost, economy of scale etc. were reported prominently by different studies. Some studies recommended formation of women FPO, as male dominance in mixed type of FPO reduces women’s chance of equal participation. Structure and organization of FPO vary from country to country depending upon the legal and policy framework of the country. Ability of FPO to create and maintain linkages outside is linked to success of the FPO in long run. Articulation of demand, service provision, capacity building and financing are the important Extension and Advisory functions performed by FPOs. Weakness related to organization and group dynamics featured prominently in many studies, which can be overcome by enabling policy, ethics, professionalism and linkages creation for success and sustenance of FPO.

기업 간 거래의존성이 협력과 거래비용감소에 미치는 영향

It is important to distinguish between the supplier dependency and the buyer dependency, which are perceived by the firms in the supply chain, and the transaction dependency that is perceived by the transaction process and results. The main purpose is to ensure that the transaction costs can be reduced. The results of the hypothesis test are as follows. First, supplier dependency and buyer dependency as transaction dependency were found to have a positive (+) influence on cooperation among trading firms. Second, cooperation with other firms in the supply chain has a positive (+) effect on the decrease in transaction costs. Finally, as a result of the analysis of the mediating effect of cooperation between transaction dependency and transaction cost reduction, cooperation was confirmed to play a role as a parameter. The implications of the research hypothesis are summarized as follows. When individual firms in the supply chain perceive transaction dependence on trading companies, it is necessary to strengthen cooperation with trading companies in order to overcome the limitations of their business activities And the strengthening of such partnerships can lead to a reduction in the transaction costs that may arise in the course of transactions with trading companies.

The coherence of liquidity measures. The evidence from the emerging market

This study examines the coherence of liquidity measures for 52 stocks listed on the Warsaw Stock Exchange. Using measures widely employed in the developed markets, we show that Amihud illiquidity best reflects the bid-ask spread calculated from the transaction data, followed by the high–low range and the high–low spread estimator. We find that the introduction of UTP system in 2013 caused the decrease in transaction cost. The interdependencies between proxies and bid-ask spreads are weaker than in developed markets, but they strengthen within the time.

The Regional Cluster Initiatives

The article considers trends and dynamics of the regional development based on cluster initiatives. It should be noted that the current structural changes have a big impact on the economic development of regional and national markets. The object of the research has been selected by the elements such as regional cluster systems operating at the Russian and international markets, tendencies and features of the development. The authors are determined that in the context of the dynamic development of the economics of most countries, that have retained a high industrial potential, is needed an organizational support of industrial enterprises and complexes contributing to increase they competitiveness. Nowadays one of the most effective forms of such support is the increasing of the efficiency of industrial production including the integration and formation of industrial clusters. The implementation of cluster initiatives contributes to the development of business competitiveness by the realization of effective potential based on effective cooperation of the cluster’s participants. It is linked to the geographical position, including the expanding access to the innovations, technologies, “know-how”, specialized services and high-qualified staff, and also decrease of transaction costs, providing the formation of preconditions for the realization of join cooperation projects and productive competition.

One size fits all? High frequency trading, tick size changes and the implications for exchanges: market quality and market structure considerations

This paper offers a systematic review of the empirical literature on the implications of tick size changes for exchanges. Our focus is twofold: first, we are concerned with the market quality implications of a change in the minimum tick size. Second, we are interested in the implications of changes in the minimum tick size on market structure. We show that there is a large body of empirical literature that documents a decrease in transaction costs following a decrease in the minimum tick size. However, even though market liquidity increases, the incentive to provide market making activities decreases. We document a strong link between the minimum tick size regulations and the recent increase in high frequency trading activity. A smaller tick enhances the price discovery process. However, the question of how multiple tick size regimes affect market liquidity in a fragmented market remains to be answered. Finally, we identify topics for future research; we discuss the empirical literature on the minimum trade unit and the recent calls for a minimum resting time for quotes.

Institutional Efficiency and Processes of Institutional Changes (as Seen by the Russian Academic Tradition)

Research in changes to the institutional environment has set a scientific problem of a balance between consequences from such changes and a need to sort out differences across imperfect standards and regulations. Approaches to solve the abovementioned issue are not the same. In a review of scientific papers, we present an original view of scientists, who are committed to the Russian academic tradition. To clarify this, the paper summarizes theories on the efficiency of economic agents and institutions. The paper also demonstrates ambiguity in approaches to a definition of efficiency conditions. It justifies factors of an increase or a decrease in transaction costs in a horizontal and vertical institutional expansion, as well as a change to the transformational function. In the course of the research, existing saturation and sparsity as features of the institutional environment are discussed.

The impact of IT over five decades – Towards the Ambient Organization

This contribution to the Ken D. Eason special issue is an illustration of the value of socio-technical analysis applied at an organizational level. We provide a brief historical overview of socio-technical IS research and review studies investigating the impact of IT on organizational structures in the last five decades, identifying a dominating (new) research theme in each decade. A key overall impact of IT in all decades has been a dramatic decrease in transaction costs making it increasingly easier for organizations to source from external providers. A five level taxonomy of sourcing arrangement is developed together with a framework of organizational activities, and a number of significant cases are offered of how organizations are sourcing practically all types of business processes, including innovation. We argue that future IT will further accelerate the movement towards more sourcing, eventually leading to a new type of organization that we call the Ambient organization.

Transaction Behavior in Nonmarket Settings: Revisiting Transaction Cost Economics Theory

This study focuses on changes in transaction costs over time in nonmarket settings. Traditional Williamsonian transaction cost economics theory shows little concern with time. However, this study reveals that time is a crucial factor in the fluctuation of transaction costs in nonmarket settings: Transaction costs increase in the initial and middle phases of a transaction. But in the long term, they may increase or decrease and are affected considerably by whether the rules, procedures, and protocols governing the transaction are effective ("green tape") or ineffective ("red tape"). In contrast, traditional transaction cost economics assumes a gradual decrease in transaction costs over time. The passage of time and the "red tape" or "green tape" governing the transaction influence stakeholders` transaction behavior in nonmarket settings.