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The purpose of this article is to identify the impact of demonstrative formal rules on the dynamics of the effectiveness of institutional frameworks. The importance of forming an effective institutional framework for any country is undeniable. The presence of an effective institutional framework is a prerequisite for ensuring the successful socio-economic development of the country, on the other hand, an ineffective institutional framework can have a wide range of negative consequences, including disparities in regional development. However, the achievement of today’s effectiveness of institutional frameworks cannot guarantee the proper socio-economic development of the country in the long term, because the institutional framework of any country is not unchanged, but is in a state of constant transformation due to the need to adapt the current formal rules to the new challenges facing society. Accordingly, the identification of the factors that determine the dynamics of the effectiveness of formal rules is no less important than the identification of the factors of ineffectiveness of formal rules. It is shown that one of these factors is demonstrative formal rules, that is, rules whose target effectiveness was not taken into account from the very beginning, and the only purpose of their implementation was to increase the political ratings of the initiators of their implementation. It has been proven that an effective measure to prevent the spread of demonstrative formal rules can be an increase in the general education of the population. The main advantages of the proposed measure are the low level of transaction costs and the absence of danger of manipulating public sentiment.

This study evaluates the risk-adjusted performance of a diversified portfolio in the Indian financial market from 2011 to 2021, incorporating Nifty 50 stocks and new-age assets. Leveraging Monte Carlo simulations and mathematical optimization, the research identifies an optimal portfolio on the efficient frontier. Integration of the Black-Litterman model provides a comparative analysis, emphasizing the impact of investor views. Despite transaction costs, optimized portfolios outperform the Nifty 50 index, with the rebalanced portfolio demonstrating higher cumulative returns. Key findings include TCS. NS is a leader in share price, HDFCBANK.NS showcasing stability and alternative assets exhibit higher volatility but have the potential for amplified returns. This research offers valuable insights for investors seeking resilient strategies in the Indian financial landscape.

Thucydides asserts that the occupation of Decelea by the Spartans in 413 BC made the grain supply for Athens costly by forcing the transport from land onto the sea. This calls into question the well-established consensus that sea transport was far cheaper than land transport. This paper contends that the cost of protecting supply lines – specifically the expenses associated with the warships which escorted the supply ships – rendered the grain transported on the new route exceptionally costly. In this paper, the benefits and drawbacks of a maritime economy, including transaction costs, trade dependencies, and the capabilities of warships and supply ships are discussed. [ABSTRACT FROM AUTHOR]

AbstractTransaction Cost Economics has been used in the healthcare context to discuss the make-or-buy dichotomy, focusing on minimizing production or governance costs, respectively. Nevertheless, it is important to recognize that there are other relevant costs, which influence these decisions in health care. Thus, the purpose of this research project was to study such additional variables which may significantly influence the dynamics of transaction costs in hospitals. Semi-structured interviewing was used to collect the data, complemented by some document analysis and observation in the visits made to the hospitals studied. The interviews were conducted during a period of three months, with directors and administrators of four Portuguese hospitals. A deeper study was developed in one of the hospitals where it was possible to get information from additional interviews and documents. Two important findings should be highlighted. Firstly, the internal transaction costs derived from the hospital’s own internal contracting process which generates retention costs of medical personnel and costs of control of the internal contract itself. Secondly, they were studied the intangible costs, particularly those related to the decision of carrying out a process that could deteriorate the patient’s health or her/his critical situation, making the total cost, including treatment and possible re-hospitalizations higher than the cost of having treated the patient internally since the initial cost was considered greater than treating the patient outside hospital facilities. These variables should be considered when studying or using TCE in hospitals, complementing and extending the traditional framework as it is discussed here.

The article is aimed at defining the causes and consequences of the emergence and spread in the system of financial monitoring of semi-formal rules along with determining the measures to prevent them. It is shown that the efficiency of the financial monitoring system is determined by the efficiency of two groups of formal rules: formal rules of financial monitoring and formal rules of financial investigations. In addition to internal factors, the inefficiency of formal rules of financial monitoring may be caused by the spread of semi-formal rules. It is identified that the reason for the emergence and spread of semi-formal rules in the financial monitoring system is the broad discretionary powers granted to the official by both formal rules of financial monitoring and formal rules of financial investigations. The formation of semi-formal rules in the system of financial monitoring, like other cases of the formation of semi-formal rules, is accompanied by static and dynamic effects. The static effect of the formation of semi-formal rules is accompanied by a sharp drop in the effectiveness of the effective formal rules of financial monitoring. The main threat of the dynamic effect is the long-term decline in the efficiency of formal rules of financial monitoring. It is proved that of the two main conceptions of preventing the formation of semi-formal rules, i. e., limiting the discretionary powers of an official and restoring the efficiency of market mechanisms or imitating their correct operation, in the case of a financial monitoring system, only the last of these conceptions can be involved. A key element in the implementation of the restoration of the operability of market mechanisms or imitation of their correct operation is the delegation of basic monitoring functions to the actors who are able to perform the relevant functions with the lowest level of transaction costs of bureaucratic procedures.

Purpose. The purpose of the study – to explain the features of disclosure of transaction costs in the accounting of agricultural enterprises, taking into account the peculiarities of the shadow economy; to identify the main factors that lead to transaction costs and make suggestions for improving their accounting. Methodology / approach. The main methods used in this study are: statistical analysis to assess the dynamics and cost structure of agricultural enterprises; graphical and analytical methods used to determine the level of the shadow economy; theoretical generalization and comparison, induction and deduction are used to reveal the content of transaction costs and their values for agricultural producers; the current state and trends of the shadow economy in Ukraine in general and in the agricultural sector in particular are assessed through synthesis and economic analysis. Results. The role of transaction costs as an institutional economic category in the activities of agricultural producers and their impact on the growth of shadow economic processes in agribusiness is studied. The article shows that the share of transaction costs of agricultural enterprises is significant, and this reduces the efficiency of these enterprises. About 8 mln ha of agricultural land are used unofficially, which is about 25 % of all cultivated agricultural land in Ukraine. The classification of factors that contribute to the development of the shadow economy in Ukraine, in particular, the shadow agricultural market, and increase the transaction costs of agricultural producers has been improved. The factors of occurrence of transaction costs and flaws of their coverage by the accounting are investigated, recommendations on their reflection in the accounting are given. The possibilities of reducing the level of transaction costs are substantiated, in particular, due to their more correct accounting, the implementation of information systems and the formation of marketing service cooperatives. Originality / scientific novelty. The transaction costs of agricultural enterprises were further studied. For the first time, the relationship between the main problems of agricultural producers, transaction costs that arise and accounting sub-accounts, which will allow more accurate accounting of these costs, is schematically presented. Our own vision is proposed to identify the transaction costs of agricultural producers under the influence of non-institutional economic theory, their reflection in the methodology of accounting and their minimization through actions of formal and informal accounting institutions. Practical value / implications. The results of the study can be used in business operations of agricultural producers, in particular, the peculiarities of accounting for transaction costs are recommended to be taken into consideration when forming the accounting policy of the entity and also judgment of a professional accountant to be considered. It is also recommended to introduce accounting engineering, ie the format of joint management actions.

The growth of fintechs has exponentially modified the international financial system. These changes affect social mechanisms that regulate the performance of economic agents, generating the need to modify the current role played by institutions. Despite the clear relationship that exists between fintechs and institutions, studies exploring the details of this relationship are still scarce. The objective of this article is to propose a review and analysis of the current state of research on fintechs and institutions. To achieve this goal, a systematic literature review was conducted, with the selection and analysis of 123 documents published which were based on preestablished inclusion and exclusion criteria. The main results show the development of a framework that allows us to increase our understanding of fintechs and institutions; the identification of three propositions that serve as a guide to the institutional landscape in which fintechs operate; and finally the recognition of a research agenda.

The purpose of this publication is to define the reasons for the inefficiency of the current demonstration formal rules governing healthcare activities and the reasons for the sustainability of the relevant formal rules. It is shown that the main reasons for the negative dynamics of the efficiency of formal rules in the healthcare sphere are the following: pressure on the part of individual interested groups, manipulation of public sentiments, and the spread of ineffective demonstration formal rules in the above named sphere. Unlike the demonstration formal rules observed in other areas of economic and public life, demonstration formal rules in the healthcare sphere are characterized not only by targeted, but also by significant transaction inefficiency. It is proved that numerous demonstration formal rules can not only reduce the efficiency of the medical system and slow down the pace of institutional reforms in the healthcare sphere, but also create conditions that pose a direct threat to human life and health. It is shown that, despite the symmetry of the costs associated with changing demonstration formal healthcare sphere regulations, the relevant demonstration formal rules can be preserved for a long time. The dynamics of ineffective demonstration formal rules in the healthcare sphere is determined by the lack of a request from society for further institutional reforms in the healthcare sphere. The latter is due to the low level of general education of the population, which does not allow society to assess the targeted and transaction inefficiency of demonstration formal rules, also to a small level of additional transaction costs of bureaucratic procedures of each individual demonstration formal rule. Measures to prevent the spread of ineffective demonstration formal rules in the healthcare sphere are proposed.

The article is aimed at identifying the factors contributing to the formation of demonstration formal rules and further determining their impact on the dynamics of the efficiency of the current institutional framework. It is shown that the main reason for the formation of demonstration formal rules is the desire on the part of political forces to get additional votes in elections. At that, both opposition political forces and those in power can resort to the practice of adopting demonstrative formal rules. Factors contributing to the adoption of demonstration formal rules are the following: the lack of influence of interested groups, the high level of public concern, and the low level of transaction costs associated with the adoption of appropriate demonstration formal rules. It is identified that the main shortcomings of demonstration formal rules are their low efficiency, which, in the case of the spread of the practice of manipulating public sentiments, is accompanied by significant reverse asymmetry, and the danger of creating an illusion of solving the relevant problem in society. As a result, there is a threat of conservation and inefficient existing institutional frameworks in the long term. It is proved that as demonstrative formal rules can be adopted only those formal rules that do not contradict the moral and ethical views of most of society, that do not create excessive additional transaction costs of bureaucratic procedures for most consumers, and do not contradict the interests of any group concerned. As result, demonstration formal rules can be characterized solely by targeted inefficiency. It is shown that the only measure to prevent the emergence of demonstration formal rules is to increase the general education of the population, which should not only limit the manipulation of public sentiments around problems governed by demonstrative formal rules, but also allow society a sensible valuation of both the level of threat of certain problems and the efficiency of the proposed formal rules.

The article is aimed at developing scientific and methodological recommendations for quantitative assessment of transaction costs at the enterprise. Achieving this aim requires solving the following tasks: analysis of the theoretical foundations of transaction costs; analysis of the components of transaction costs and their classification; analysis of methods for measuring transaction costs; practical implementation of the proposed scientific and methodological recommendations. The methodical approach to the assessment of transaction costs proposed by the author includes three stages. The purpose of the first stage is to plan a complex of works that precede the conclusion of a contract and the contract itself, along with its support. It is proposed to use grid (network) methods of planning and management with the involvement of a group of experts to determine the list of works, their sequence and labor complexity. The content of the second stage is to calculate the cost elements in order to draw up an estimate of transaction costs associated with the list of works performed at the first stage. The third stage is related to the calculation of cost elements in order to compose the estimate of transaction costs associated with the support of the contract. Based on the existing methods of calculating costs at the enterprise (calculation of the cost of production, estimate of production costs), an estimate of transaction costs is proposed and an example of their calculation is presented. This allows to plan, calculate, control and analyze transaction costs at all stages of contracting together with their support. The problem of transaction costs requires further research in the direction of their separation, classification, analytical and synthetic accounting

This article discusses the impact of new technologies, such as blockchain systems for the functioning of enterprises in the fuel and energy sector. Authors give the definition of blockchain system and split it into types. The article depicts how the blockchain technology affects the fuel and energy complex. Existing cases of technology in the economy has been analyzed in this work. Authors highlighted barriers and prospects of the technology development. The work combines the theoretical aspects of blockchain technology and analysis of practical applications, high operational problems and predicting the potential beneficial effect of a new technology introduction. The aim of this work is to give an economic definition of efficiency of blockchain implementation in modern world. In this article the author used following methods: analysis, synthesis, induction, deduction, thought experiment method, hypotheticaldeductive method and retrospective analysis. In the process of research, the author came to conclusion that the evolution of blockchain has been explored. Main sectors of economics for blockchain use have been emphasized and economic effectiveness of technology has been substantiated.

The article is aimed at identifying and analyzing transaction costs when making management decisions at the level of an economic entity. In the course of the research, the following methods were used: grouping – in determining the main forms of transaction costs based on existing classifications; generalization – when systematizing information on the identification of approaches to the assessment and measurement of transaction costs; structural and logical – to determine the place of transaction costs in the structure of the enterprise’s costs; analysis and synthesis – to substantiate the recommendations for displaying information on the level of transaction costs at the enterprise in financial statements. The main forms of transaction costs on the basis of existing classifications are researched. Information on identification of approaches to valuation and measurement of transaction costs is systematized. The place of transaction costs in the structure of the enterprise’s expenses is determined. Recommendations on displaying information on transaction costs at the enterprise in the financial statements on the basis of their occurrence in a certain sphere of activity of the market entity (transaction costs of operational, financial, investment activities) are substantiated, which represents the scientific novelty of the research. It is concluded that the institutional approach, in particular application of the theory of transaction costs before their valuation and preparation of financial statements, allows not only identifying possible solutions to existing problems in accounting theory and practice, but also seting fundamentally new tasks that require non-standard solutions. The practical significance of the obtained research results is to determine the impact of transaction costs on the efficiency of the functioning of market entities and substantiate recommendations for displaying information about their level at the enterprise in financial statements.

In the 20th century, Peru was one of the major fishmeal producers worldwide. Luis Banchero Rossi (1929-1972) was the main driving force behind this economic boom. This article discusses how, given a set of historical conditions favoring such a setting, Banchero’s business performance surpassed that of other Peruvian and foreign producers in the industry, and enabled this development. This research uses complementary methodologies; i.e., case study work and financial databases. The authors find that Banchero’s share in Peru’s total exports reached 15.3 % in 1968, far above the next largest Peruvian exporter. In this regard, Banchero operated his organization following a set of criteria, called market governance by Williamson, plus several advantages, including negotiation abilities, social capital formation, human capital management, and tacit knowledge development, building on Peru’s specific sociological conditions. These conclusions help understanding how an entrepreneur of humble origins like Banchero worked around a commodity such as fishmeal to become a successful business leader worldwide.

The change of economic formation in the post-Soviet countries has led to the revision of the attitude to rent relations, as well as the assessment of their effectiveness. The latter is possible when transaction costs are taken into account and these transaction costs certainly arise in terms of rent relations. Currently, their composition, and especially in the implementation of rent relations, remains undisclosed. The article is aimed at solving this problem, as well as outlining ways to reflect transaction costs in the accounting system. Thus, the research in this direction is relevant and promising. The purpose of the article is to identify and classify transaction costs in the system of rent relations. The methodological basis of the study is the dialectical method of knowing the essence of rent relations and measures to improve them; bibliographic method for identification of transaction costs in the context of theories of ownership, institutionalism, agency relations and collaboration alliances as a theoretical basis for the implementation of rent relations; comparative analysis of the economic essence, causes and classification of transaction costs; abstract-logical method for substantiation of basic theoretical positions, formulation of conclusions; modeling method for constructing the classification of transaction costs of rent business entities. Based on the study of recent publications, the existing approaches to determining the nature of transaction costs are summarized, the multivariate classification is identified, and the classification of transaction costs arising within the rent relations and which can be used as a basis for their reflection in accounting. The practical significance of the study is to develop the classification of transaction costs, which simplifies their identification and attribution to different stages of the implementation of rent relations.

Purpose – This paper aims to analyze the underlying factors of contract renewals in business-to-business (B2B) contracts. Design/methodology/approach – The authors build a unique data set with 296 contracts signed between a major firm supplying petrochemical goods and its 128 customers between 2013 and 2016. They use Insider Econometrics as their methodological approach. Findings – The econometric results suggest that contracts involving higher volume of trade, higher levels of dedicated assets representing seller’s specific investments in each transaction, and contracts comprising more than one product present an increased likelihood of being renewed. Research limitations/implications – Although limited to a single organization, this paper contributes to management theories focused on buyer–supplier relationships in which coordination between interdependent parties is required. Practical implications – Practitioners engaged in B2B relationships may benefit from the findings to shape their bargaining strategies in contexts of high levels of asset specificity and bilateral dependence. Originality/value – This paper contribute to theories related to the strategic negotiation between buyers and suppliers by emphasizing the importance of asset specificity in a nuanced and multifaceted fashion, by highlighting aspects related to resource dependency, and idiosyncratic characteristics on contract renewal.

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The article is aimed at researching both the world and the domestic experience of the use of outsourcing in the national economy in general and at the enterprises of agricultural business in particular. The development of outsourcing relations in the world, the role of outsourcing in the development of the world economy is considered. Outsourcing relations in the agriculture of the Netherlands, UK, Poland and Japan are analyzed. Special emphasis is placed on the analysis of advantages and risks of outsourcing, selection of outsourcers to perform certain functions of the enterprise. It is believed that companies that use only internal capabilities instead of external (outsourcing) are less oriented towards innovation and cannot take advantage of opportunities to develop new value-added products. The narrowly specialized outsourcers can contribute much more to creating added value with lower costs than any integrated enterprise. On the basis of the carried out researches, it is concluded that the expected benefits of outsourcing can include such as: cost savings; reduction of investment costs; supply of fresh capital; transfer of the permanent cost to the variable cost; improved quality level of products and services; improving the adaptability of the enterprise; access to modern technologies; focus on the company’s key activities and solving problems related to existing functions. Numerous studies carried out abroad show that outsourcing brings a technological effect that can become an important means of economic growth in the country. In particular, China’s example proves that there is a strong positive correlation between the level of development of outsourcing and production output volumes, trade volumes, employment of the population and the level of innovation. The reasons for low level of implementation and development of outsourcing at domestic vertically integrated enterprises of agrarian business are identified.

The article is aimed at identifying measures to counter the negative consequences of public resistance to positive institutional changes arising from the manipulation of public sentiment. It is identified that induced resistance to the introduction of efficient formal rules can take two main forms: active resistance (by groups of concern) to introducing new formal rules that they consider to be a threat towards them, and passive refusal to comply with the requirements of the new formal rules. The consequence of the first form of induced resistance, i.e., active resistance, is the refusal to introduce appropriate formal rules or the adoption of amendments that completely change their content and reduce their efficiency. In contrast, the second form of induced resistance, i.e., passive failure, without preventing the replacement of existing formal rules with more efficient, significantly reduces their efficiency. It is shown that the strategy of mitigating the negative effects of induced resistance while reforming the existing formal rules by countering the manipulation of public sentiment is impractical because of the low efficiency of the measures involved and/or the high costs associated with their implementation. The author proposes the following measures to minimize the negative impact of induced resistance on the efficiency of existing formal rules: removing the group of concerns from the relevant formal rules, directly targeted at eliminating the motivation of the group members, and shifting part of the public transaction costs of resistance to the group of concern, which provides for the redistribution of costs between society and the members of the group. It is demonstrated that, as a result of these measures, compromise formal rules will be established, the efficiency of which will be intermediate between the efficiency provided by the formal rules adopted under the pressure of the group of concern, and the formal rules adopted in the event of a complete lack of public concern.

The article is aimed at identifying potential measures to prevent manipulation with public sentiments and evaluating their possible efficiency. It is shown that freedom of speech and independence of the media not only do not prevent the spread of manipulation of public sentiment, but also simplify the process of creating conditions conducive to manipulation. Potential measures to prevent manipulation with public sentiments are provided, which can be divided into three main groups: repressive measures, a policy of comprehensive resolution of a common problem, and measures to improve the overall erudition of society. The efficiency of the mentioned measures to prevent manipulation and the prospects for their application are analyzed. Repressive measures have been shown to be the least efficient group of measures because of their inability to eliminate the potential for manipulation and the extreme complexity of detecting and proving a fact of manipulation. It is also identified that when the society’s concern about the manipulation of public sentiments reaches a certain level, there is a risk that such repressive measures themselves become an instrument of manipulation. It is determined that a policy of comprehensive resolution of a common problem is efficient only if it is applied before the manipulation or in its initial stages. It is displayed that measures to improve the overall erudition of society are the only group of measures that can eliminate the very possibility of creating favorable conditions for manipulation with public sentiments. It is determined, however, that the main obstacle to use of this group of measures to prevent manipulation with public sentiments is the high level of costs, which consist of: the direct costs of the Government providing additional educational services; the costs to recipients of educational services to take additional courses; transactional costs arising from coercion to comply with the requirements of educational bureaucratic procedures, and the costs of the economy arising from inefficient use of the labor force.

Purpose - This paper aims to analyze the impact of transaction costs in portfolio optimization in Peru. The study aims to compare the transaction costs structure applied in Peru with respect to the ones applied in the USA, and over a few dimensions. Design/methodology/approach - The paper opted for an empirical study analyzing the cost of rebalancing portfolios over a set period and dimensions. Stocks have been carefully selected using Bloomberg terminals, and portfolio designed then rebalanced using VBA programming. Over a few dimensions as type and number of stocks, holding period and trading strategy, the behavior of these different transaction costs has been compared. The analysis has been done for four different portfolios. Findings - The paper provides empirical insights about how a retail investor actively trading in Peru can pay up to 14 times more in transaction costs than trading the same portfolio in the USA. These comparatively high transaction costs prevent retail investors to trade in the Peruvian stock market while fueling illiquidity to this market. Research limitations/implications - The paper deals with a limited amount of Peruvian stocks. Researchers are encouraged to test the proposition further, including other dimensions. Practical implications - The paper includes implications for any retail investor that wants to invest in Peruvian stocks, giving an insight about how expensive it is to actively rebalance a portfolio in Peru. Originality/value - This paper fulfils an identified need to study how much it costs to actively invest on the stock market in Peru.

This research aims to analyze the effects of the adoption of blockchain on information governance and transaction costs. We present an exploratory, quantitative, and qualitative study. In the first stage, quantitative, a theoretical model was developed and tested based on structural equation modeling (PLS-SEM). Data collection was carried out through an online survey with IT and management professionals involved in blockchain projects from different countries. In the second stage, qualitative, a multiple case study was carried out in order to illustrate how the relations of the developed model are established. In the quantitative phase, the study’s hypotheses were supported and it was observed that the adoption of blockchain technology can be seen as a mechanism to reduce transaction costs, since it has a positive impact on information governance. In the qualitative phase, it was observed that, in the three cases analyzed, characteristics such as information security, transparency, and the possibility.

Purpose: The study explores the predictive relationships of the analytical dimensions of transactions and opportunistic behavior on the transaction costs of the Brazilian pharmaceutical retail market. Originality/value: The study contributes to the advancement of empirical research on the subject and proposes indicators modeled by structural equations to simultaneously estimate the effects of uncertainty, asset specificity and frequency of transactions, and opportunism in transaction costs. Design/methodology/approach: Transaction costs were estimated with indicators related to the costs of analysis, preparation, and adaptation of contracts; these are analytical dimensions of transactions with indicators that reflect the specificity of human assets and physical/dedicated assets, technological and market uncertainty, and the recurrence of transactions between partners. The data collected via an electronic questionnaire were processed with the technique of Modeling in Structural Equations. Results: Data processing demonstrated the significant influence of the frequency of transactions on opportunism and hence on transaction costs. It also confirmed the impact of uncertainty on ex ante transaction costs and the specificity of assets on ex post costs. The results denote the relevance of analytical dimensions in the theoretical framework of Transaction Cost Theory and the importance of frequency as a catalyst for opportunism. It can be used as a parameter in strategic actions to create reliable commitments and circumvent unforeseen contractual failures in the pharmaceutical retail market. / Objetivo: O estudo explora as relações preditivas das dimensões analíticas das transações e do comportamento oportunista sobre os custos de transação no varejo farmacêutico brasileiro. Originalidade/valor: O estudo contribui para o avanço das pesquisas empíricas sobre o tema e propõe indicadores modelados por equações estruturais para estimar simultaneamente os efeitos da incerteza, especificidade dos ativos e frequência das transações e do oportunismo nos custos de transação. Design/metodologia/abordagem: Os custos de transação foram estimados com indicadores relativos aos custos de análise, elaboração e adaptação de contratos; as dimensões analíticas das transações com indicadores que refletem a especificidade de ativos humanos e ativos físicos/dedicados, a incerteza tecnológica e de mercado e a recorrência das transações, entre parceiros. Os dados coletados, via questionário eletrônico, foram processados com a técnica de Modelagem em Equações Estruturais. Resultados: O processamento dos dados demonstrou a influência significativa da frequência das transações sobre o oportunismo e deste sobre os custos de transação. Confirmou-se também o impacto da incerteza nos custos de transação ex ante e da especificidade dos ativos nos custos ex post. Os resultados denotam a relevância das dimensões analíticas no arcabouço teórico da Teoria dos Custos de Transação e também a importância da frequência como um catalisador do oportunismo, podendo ser utilizada como parâmetro em ações estratégicas para criar compromissos confiáveis e contornar falhas contratuais não previstas no contexto do varejo farmacêutico.

This paper aims to evaluate SME support programs in the context of institutional theory. The methodological basis of the study is the theory of transaction costs, which makes it possible to develop the theoretical aspects of evaluating the effectiveness of state programs by including a new factor in the analysis, i.e. various types of the funds recipients’ transaction costs. The authors raise question about the effectiveness of the applied entrepreneurship support programs using the case study of Chelyabinsk and Chelyabinsk region. We analyse the main requirements to applicants, time costs for obtaining subsidies, as well as feedback indicators. On the one hand, we reveal that government bodies impose strict requirements for applicants. On the other hand, the demand for government financial support from SMEs is low. The researchers assess transaction costs of subsidies recipients by transforming time costs into financial costs and conclude that the level of SME transaction costs when submitting applications is insignificant. The main reason behind SME’s reluctance to participate in the tender for the allocation of budget funds is a high level of transaction costs of a different nature, that is losses associated with stepping out of the “shadow” when providing information for authorities. The practical application of the results is aimed at improving the adequacy of methods for evaluating the effectiveness of SME support programs for the institutional constraints of the Russian small business.

The article substantiates the place and the role of values and stimulus of economic activity in the general structure of the factors affecting the entrepreneurial activity and the institute of entrepreneurship in Russia, and also disclosed heuristic capabilities of specific theoretical tools of institutional theory in the study of values and stimulus of economic activity.

The article is aimed at substantiating the modern tendencies in the cost accounting and identifying further directions of its development on the basis of analysis of innovative accounting systems in management of enterprise’s expenses. Problems and tasks regarding the cost accounting are illuminated, possible ways of their solution are suggested. An analysis of innovative systems of accounting in management of enterprise’s expenses is carried out. Tendencies in accounting are researched on the basis of use of the theoretical-methodological instrumentarium of the institutional economic theory. It is determined that management of enterprise cost accounting should be a continuous, operational process of generating the costs-related information using the instruments and methods that are driven by enterprise goals together with the opportunities for their application, which will help to make informed managerial decisions for rational use of limited resources and to achieve high economic result of enterprise. The innovations in cost accounting are systematized and further directions of its development are substantiated.

A number of events taking place in the twenty-first century such as mass arrests of members of the Iran President Mahmud Ahmadinezhad's executive office accused of witchcraft make one doubt that witch hunt trials remained in the far Middle Ages. It is religious motives that are usually considered the main reason for anti-witchcraft hysteria. When analyzing the history of anti-witchcraft campaigns we came to the conclusion that in the majority of cases witchcraft was a planned action aimed at consolidating the state power and acquiring additional sources of revenue. By using economic instruments we tried to reveal some general regularities of witch hunt in various countries as well as conditions for this institution to emerge and for ensuring its stability by the state power We show that witch hunt was an instrument of implementing institutional transformations aimed to consolidate the political power or to forfeit wealth by the state power.

The spread of digital technologies enhances the topicality of studying new ways of organizing the intercompany exchange of legally relevant documents. The article scrutinizes the linkage between contractual relationship, transaction management mechanisms and discrete institutional alternatives of document interchange. The methodological basis of the study is the provisions of the neo-institutional economic theory, including transaction cost theory and contract theory. The paper addresses the economic effects produced by the spread of electronic document interchange (EDI) through its impact on various types of transaction costs. In addition to the technical component, the issue of compatibility of electronic document formats also has the economic component expressed in the development of an industry standard in the market for EDI service operators and in the above-mentioned effects arising in the process of contracting. The choice of the way of interorganizational document interchange has a significant role in the contracting process, especially in the conditions of the difference in counterparts’ methods of organizing the document flow. The authors discuss the economic aspects of the compatibility of the standards of the electronic documents for interorganizational exchange in the contracting process from constructing contractual arrangements to final paying for goods and services delivered.

The article analyses the processes that are widely known in the literature as “the financial-technological revolution”, or FinTech. It shows that these processes derive from the global financial crisis of 2007–2008 that turned out to be a crisis of the institutional economy, or “the economy of transactions”. The authors determine the main directions for overcoming the crisis which over the past 10 years have formed new mainstream: a transition to Impact Investing aimed at implementing not only market values, but also socio-economic ones – Shared/Blended Values. The technological basis for new mainstream was the development of the third-level machines and technologies that are above energy and information technologies, i.e. value machines, or Intangible. In practice, FinTech is already undergoing rapid development in China and the West on the basis of digital platforms that eliminate transaction costs and generate added value and capitalization of property. The authors formulate the anticipated consequences of FinTech.

The competitiveness of the national economy is ensured by mutually beneficial cooperation of various business activities and industrial specialization of business units. The purpose of this article is to identify the main motives of the economic behavior of business units in Ukraine, which predetermine structural changes in the industrial sector and agro-industrial complex, and to develop an algorithm for substantiating the strategic choice of participating forms in integration formations for the business development. The economic and statistical analysis has identified trends in structural changes in the industrial and agricultural sectors of the Ukrainian economy. By generalization of scientific views on the content of integration processes, there were identified the influence of institutional factors on the development of forms of integration interaction and maintaining the stability of integrational entities, and the factors of technological and logistic expediency on the formation and development of business networks. There was formed the algorithm of substantiation of strategic decisions regarding the choice of enterprises of the forms of participation in the integration formations of different types. The differences in the positions of the initiators of the business network creation and the participants involved in them were identified regarding the composition and relationships in the network that affect its sustainability. The application of this algorithm will ensure that the management of enterprises makes more substantiated decisions on the creation of an organizational framework for the implementation of competitive strategies in promising areas of inter-sectoral cooperation.

The article is concerned with the interdependence between dynamics of the international trade and economic relations development and the existing level of foreign trade policy transparency in accordance with the provisions of the WTO Trade Facilitation Agreement. The effect of observance of transparency principle in foreign trade policy on forming the transaction costs in foreign trade is analyzed. A comparative analysis of the influence of import duties and transaction costs on the formation of Ukraine’s foreign trade barriers is carried out. Prospects of the national export-import activity development under increasing transparency of foreign trade policy of Ukraine and other world countries are determined.

Purpose: This article aims to uncover the influence employment relations, and more specifically union avoidance has on the decision to outsource road transport. Employment Relations literature often attributes outsourcing decision to decollectivist strategies, minimising the influence unions have in their workplaces or to labour cost reduction objectives. These explanations, however, fail to explain why some firms do not outsource when their sourcing structure incurs greater union involvement or industrial relation. Design/methodology/approach: The author examines two case studies. Company A and Company B, while operating in a similar environment, selling similar products and offering a similar home delivery service have adopted different governance structures for their outbound transport function; Company A has integrated while Company B has outsourced. Was union avoidance or transaction cost reductions central to their respective decisions? Findings: Company A did not integrate in an effort to circumvent union intervention or reduce costs. Company A's integration, on the contrary, increased the firm's dealings with unions, as well as regulatory compliance and transaction costs. Company B's decision to outsource yielded similar results. While not experiencing an increase in union intervention, the firm failed to reduce the density of unionised labour and by maintaining ownership of delivery vehicles, saw a rise in costs. Originality/value: Union avoidance is not an explanatory factor in the sourcing decision, nor is it possible to explain through transaction cost economics. Explication for outcomes lies in value enhancement. Companies are willing to incur higher employment relations and transport costs if the result is higher value capture. [ABSTRACT FROM AUTHOR]

The estimation of transaction costs is a well-known methodological problem, the solution of which determines the possibility, among other things, to estimate the conditions for business operations. The growing complexity of the social and economic interaction emphasizes the special role of transaction costs in regulation of the stability condition. The article analyzes approaches to the determination of the essential characteristics of transaction costs. The scientific evidence of dividing of transaction costs into normal and recertative is provided. Their differentiation is connected to the impact of uncertainty and also the principal unavoidability of transaction costs regardless the efficiency of the economic mechanism and other factors. An important factor here is friction force – flexibility of the economic space. The growth of transaction costs that is observed with the increased uncertainty emphasizes only the revealed features in the friction force of the economic environment. All this led to the conclusion on the availability of a generalizing factor that estimates the conditions of exchange transactions. For this, the notion of transaction capacity was introduced; it expresses the cumulative impact of the external and internal conditions, which, this way or another, are understood by the specialists making the managerial decisions. The existence of some value of transaction costs when transaction is declined presupposes an important assumption that the transaction capacity has the same limits of dynamics. The obtained results allow us to build a function of transaction capacity, which shall be considered as a tool for risk-profile analysis.

Transaction cost economics (TCE), as developed and operationalized by Oliver Williamson, is one of the most prominent and influential developments in the social sciences. In recent years, on the basis of many empirical studies, it has been claimed that the evidence has corroborated TCE. If so, this would have major implications for the debate between TCE and other approaches to understanding the nature of the firm. In this paper we submit the most prominent TCE empirical work to critical scrutiny, on the basis of the standards and predictions in Williamson's own writings. We find a much more mixed picture, with few studies giving unambiguous support to Williamson's TCE. Furthermore, a significant number of the studies can be reinterpreted in terms of a competence or capabilities approach. We conclude that the empirical evidence does not decisively support Williamson's TCE and we stress the importance of an empirical program of joint testing of rival theoretical approaches. Copyright © 2006 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

The authors examine the influence of the firm's technology and marketing profile on foreign market entry mode by testing hypotheses based on data from 105 firms in four European countries. Four technology and marketing variables were the most important: (1) the firm's generic marketing strategy—market concentration versus diversification, (2) demand uncertainty—the position in the life cycle of the firm's principal product, (3) transaction costs—transaction uncertainty and research and development, and (4) value added—product patents. The authors suggest ways managers may be assisted in their foreign market entry decisions on the basis of their firms' technology and marketing profile. [ABSTRACT FROM AUTHOR]

The publication is aimed at studying the role of institutions in the development of modern macroeconomic systems and the growth of their wealth. The integral, integrated, logical approach plus the mathematical modelling method were used for carrying out the analysis. It has been found that the value of institutions is defined for society through cost reduction, as opposed to the value of other accrued benefits that exist in forms of valuable material things, knowledge, information, etc., and the worth of which, accordingly, is determined by the growth of the end result (increase in their volume). A classification of institutions by the criterion of their efficiency for the development of society has been proposed. The economic-mathematical model has been built and analyzed in the form of a regression equation that expresses the dependence of GDP according to the purchasing power parity (PPP) per person from the corruption perception index. It has been found that there is a stochastic link between the corruptness of public governance and the formation of the wealth of modern macroeconomic systems. The obtained results can be applied in the sphere of public governance in the formation of Ukraine’s social and economic policy. Prospects for further research are an in-depth examination of the relationship between the institutional infrastructure of society and the level of its wealth.

The article is aimed at a theoretical generalization of the nature and causes of appearance of transaction costs, development of proposals on formation of an effective model for their management, including the proposals on the basis of improved accounting for brewery enterprises. According to the carried out analysis of the authors’ positions on accounting, including the positions related to reflection of transaction costs in the accounting records, it has been concluded about expediency to account such costs by types, although only in regard to the activities, directed toward sales of production. A goal tree graph has been built to ensure the rationality of research on elaborating the classification (grouping) of transaction costs and on substantiating the composition of working accounts for their accounting. In order to ensure the continuity and timeliness of including the transaction costs into the prime cost of the production sold, it has been proposed to use planning and reporting calculations. An approach has been developed to determine the planned inclusion of transaction costs in the prime cost of the production sold (exponential average). An appropriate model for recording the transaction costs has been built. Prospect for further research will be construction of the efficient policy decisions concerning the enterprise’s activities, based on the above conception of the system of management of transaction costs together with its information base.

The article substantiates the place and the role of values and stimulus of economic activity in the general structure of the factors affecting the entrepreneurial activity and the institute of entrepreneurship in Russia, and also disclosed heuristic capabilities of specific theoretical tools of institutional theory in the study of values and stimulus of economic activity.

Although there are some efforts to integrate the capabilities and economy of transaction costs perspectives, advances in this direction are scarce. The integration of these two perspectives is an emerging area of study called transactional capability. This article aims to examine the transactional capabilities of firms operating in the Peruvian financial system. The method chosen, for the search for evidence in that sector, is the study of multiple cases. The unit of analysis was the contract agreement corresponding to each of the ten firms surveyed consumption. The results show the existence of transactional capability in the three dimensions analyzed: customer relations, bargaining power and design contracts. Such evidence is relevant because, besides demonstrating the existence of the transactional capabilities, points to the possibility of continuing the consolidation of this new construct.

According to the assumptions of representatives of institutional economics, enterprises as market institutions exist due to the existence of transaction costs in the processes of market exchange. The hierarchical structures of enterprises limit their occurrence and thus they are by definition more effective than the coordination of exchange by a market mechanism. The creation and maintenance of such structures also bring about costs. These are generally management costs, some of which are transaction costs. They result from imperfections of internal processes, information asymmetry, the division and establishment of property rights, opportunistic behaviour or specific resources involved in these processes. The article looks at the problems of management costs perceived from the institutional point of view, as transaction costs and an indication of the broad applicability of this approach, especially in the context of new phenomena and processes based mainly on modern technologies and the mechanisms of co-creating value. The considerations are of a conceptual character and are based on the achievements of various scientific disciplines.

The cooperation concept, which in its content can be regarded as an economic phenomenon, the essence of which is the economic relationships between partners in terms of cooperation in order to achieve the common goal of lower specific costs of resources on the basis of mutual benefit for all participants, has become a powerful component and a promising direction. economic development of many countries of the world. The activity of cooperative enterprises takes place in a certain institutional environment, which is defined as a set of fundamental social, political, legal, and economic rules within the framework of human behavior. It is the institutional approach to the cooperation development that is currently at the center of attention of contemporary researchers and needs a detailed analysis. Therefore, the purpose of the article is to study the main institutional imperatives of the development of cooperative relations of business entities in modern conditions. In the article, based on theoretical-methodical analysis and structurally functional approach, the system-forming socio-economic institutes of cooperation are defined. It is determined that among the socio-economic institutions of co-operation, institutions of cost, efficiency, co-operative ideology occupy a significant place. The institution of expenditures is described in detail, defined types of transaction costs (information search, negotiation, measurement, specification and protection of property rights, opportunistic behavior, politicization) and their characteristics in the context of cooperation. The institute of cooperative ideology and its influence on expenses of cooperative association are investigated. It is proved that the main advantage and motive of cooperation is the desire to obtain an additional (synergetic) effect from the interaction of participants. The synergistic effect may be due to the fact that the combined use of several mutually agreed strategies is more beneficial than the isolated implementation of someone and comes as a result of the self-organization of complex systems. The following main elements of the cooperative system of interaction are defined: enterprise integrator, suppliers of material resources, competitors, intermediaries, consumers, etc. The synergy effect in the cooperative is substantiated.

While archaeologists now have demonstrated that barter and trade of material commodities began in prehistory, theoretical efforts to explain these findings are just beginning. We adapt the central place foraging model from behavioral ecology and the missing-market model from development economics to investigate conditions favoring the origins of household-level production for barter and trade in premodern economies. Interhousehold exchange is constrained by production, travel and transportation, and transaction costs; however, we predict that barter and trade become more likely as the number and effect of the following factors grow in importance: (1) local environmental heterogeneity differentiates households by production advantages; (2) preexisting social mechanisms minimize transaction costs; (3) commodities have low demand elasticity; (4) family size, gender role differentiation, or seasonal restrictions on household production lessen opportunity costs to participate in exchange; (5) travel and transportation costs are low; and (6) exchange opportunities entail commodities that also can function as money. Population density is not a direct cause of exchange but is implicated inasmuch as most of the factors we identify as causal at the household level become more salient as population density increases. We review archaeological, ethnohistoric, and ethnographic evidence for premodern marketing, observing that the model assumptions, variables, and predictions generally receive preliminary support. Overall, we argue that case study and comparative investigation of the origins of marketing will benefit from explicit modeling within the framework of evolutionary anthropology. [ABSTRACT FROM AUTHOR]

Managing of transaction costs provides availability of timely, reliable and sufficient information. That’s why, the organization and method of economic analysis of transaction costs should fit the inquiries of management personnel. The study outlines the sequence of implementation of the system of analysis transaction costs on enterprises as well as specifying the stages of its conduct (preliminary, main and final). As the part of preliminary stage the article determines the objects, goals, tasks and the sources of information, and develops the program of analysis of transaction costs. On the second (main) stage of analysis are given the ways of realization of the program, methods, modes of analysis through the statistical processing, reduction, grouping and studying data about the transaction costs of the enterprise. Regarding the final stage, the author proposes the non-text and descriptive forms of submitting of results of analysis of transaction costs.

The article formulates the problem of land ownership formation, and land market development. It has been found that the theory of institutional changes has a high methodological potential for the studies of land relations. It is proposed to use the institutional approach to the study of land ownership and transaction costs, whose growth hinders the development of the land market in Russia. According to the theory of R. Coase, the significance of transaction costs for the land market development was shown, and the conclusion about the need to reduce them was made. Taking into account the objective limitations of turnover of agricultural land category, it was proposed to assess the potential of development of the various sectors of land market in the country using the growth curve methodology. There was justified the expediency of evaluating the public and private sector of land market in terms of turnover, which expresses the ratio of the total land area of transactions in the segmental markets to the total amount of land in the definite form of ownership. The land transactions were evaluated and the forecast of the land market development in the Russian Federation was defined.

Na finančnih trgih se pri uporabi hedging tehnike pojavijo transakcijski stroški. V tem članku se obravnava problem uporabe delta hedging tehnike ter redukcije proporcionalnih transakcijskih stroškov. V literaturi navedene metode običajno temeljijo le na uporabi tako imenovanega faktorja gama, ki ponavadi predstavlja največji člen v aproksimacijski vrsti. Toda pri opcijah s kratkim časom dospetja, mesec ali nekaj tednov, lahko drugi členi vrste postanejo celo večji. Tedaj so potrebne natančnejše aproksimacije. V tem članku so analizirane aproksimacije višjega reda in njihova uporaba pri zmanjšanju povprečnih proporcionalnih transakcijskih stroškov. Na podlagi analize je podan ustrezno prilagojen faktor delta, s katerim se povprečni aproksimativni proporcionalni transakcijski stroški lahko zmanjšajo. Pripadajoča napaka hedging tehnike se pri tem ne poveča. Za ilustracijo metode je dodanih nekaj primerov.

There is great interest in the role of management control on theoretical and practical developments within the field of Inter-organizational Relations. This research aims to contribute at verifying how relationships between firms affect the management control tools used, as illustrated in a specific case: the relationship between the franchisor and its franchisees, which has not received much attention to date. As indicated by previous research, case studies can be helpful to determine the factors affecting the type of management control tools that should be established to manage inter-firm relationships. Results have found that the franchisor uses quantitative control mechanisms in order to avoid common types of opportunistic franchise behavior related to royalty payments and other financial requirements, as well as qualitative tools to assure the fulfilment of agreement-related conditions regarding knowhow, to resolve unexpected non-economic problems and to encourage personal relationship and trust. This study also provides an outline on franchisor-franchisee relationships in the model proposed by Van der Meer-Kooistra and Vosselman (2000). To test this model, the franchisor’s perspective (outsourcer) has been taken into account as performed when building the model. Findings indicate that this relationship shows many similarities to the pattern based on bureaucracy and a few similarities to patterns based on trust.

The paper examines the super-replication of contingent claims in a discrete time financial market with proportional transaction costs. The sole assumption on stock price dynamics is that the returns are bounded. The class of path-dependent European options with nonnegative convex payoff functions is considered. It is proved that the pricing of this type of options can be studied through the pricing of a suitable binomial model. As a consequence, it is shown that the pricing algorithm, which is essentially a dynamic programming procedure on a tree, can be used when the set of possible scenarios is not finite.

Orientation: Participating in the agriculture and agro-processing chain has the potential to enhance the competitive advantage of small-scale agricultural enterprises in South Africa. Research purpose: The study empirically investigated the extent to which agro-processing participation is determined by human and social capital factors, while accounting for the moderating effects of transaction costs. Motivation of the study: Research is required that examines levels of human and social capital of small-scale agripreneurs, as these act as major constraints towards improved competitiveness of agribusinesses. Design: To test the study hypotheses, a structured questionnaire was administered to 166 small-scale agripreneurs at farmer gatherings across regions in South Africa. Findings: Based on the survey results, both human and social capital factors showed a positive and significant influence on agro-processing participation. The findings further highlight the importance of market access and transaction costs to small-scale agripreneurs. Practical implications: Policy-makers need to be aware of how human capital factors such as previous education and experience impact participation in agro-processing activities and help to mitigate transaction costs. Contribution: Study findings are highly relevant to South Africa as agro-processing and value-adding activities are not always scale dependent, and hence, a focus on human and social capital is valuable.