Abstract:The concept of transaction expenses developed by R. Coase allows to consider functioning of economy and its agents from the information viewpoint. This viewpoint implies that information exchange between agents and the urge to overcome information incompleteness start playing the crucial role. Transaction expenses are information exchange costs for the purpose of elimination (reduction) of its incompleteness and the related uncertainty. R. Coase showed that creation and the size of firms are closely connected … Show more
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