Evidence item

Coase defines transaction costs through price discovery, negotiation, contracting, inspection, and dispute settlement. DIRECT_TEXT

Authenticity UNVERIFIED · extraction UNVERIFIED · independence group none (unreviewed) · created seq 15194

Source: Ronald H. Coase – Prize Lecture · locator {} · excerpt hash sha256:3a4362b5c06ebf08ed5732e990f8bd6e2a56d36d274dd50fd6776b5ff804ef58

There were costs of using the pricing mechanism. What the prices are has to be discovered. There are negotiations to be undertaken, contracts have to be drawn up, inspections have to be made, arrangements have to be made to settle disputes ... These costs have come to be known as transaction costs.