580 California St., Suite 400
San Francisco, CA, 94104
Key research themes
1. How do fixed and proportional transaction costs influence agricultural producers' market participation and supply response?
This research area investigates the structural role of transaction costs—both fixed and proportional—in shaping the heterogeneous market participation observed among agricultural households. It matters because understanding the decomposed impact of these costs on producers' decisions to buy, sell, or self-supply can critically affect the accurate estimation of supply elasticity, inform policy design, and clarify observed market behaviors in developing economies where market participation is not homogeneous.
Key finding: This study develops and estimates a model that separately identifies the effects of proportional and fixed transaction costs on Mexican corn producers' supply decisions. It reveals both cost types significantly affect whether... Read more
Key finding: Using survey data from 240 smallholder cassava farmers, this paper quantifies the impact of transaction costs on the likelihood of market participation. It finds that better road infrastructure and cooperative membership... Read more
Key finding: Employing a novel transaction cost index derived from observed price wedges in rice markets, this paper empirically demonstrates that transaction costs adversely affect labor market participation and wage earnings. The... Read more
Key finding: This qualitative study highlights how farmers' perceptions of transaction costs—including administrative burdens, required labor time, and uncertainty—negatively influence willingness to engage in voluntary... Read more
Key finding: Analyzing four TDR programs in Maryland, USA, this research reveals that transaction costs vary significantly over the life cycle phases of policy implementation and are unevenly borne by different stakeholders. It documents... Read more
2. What theoretical and empirical challenges are associated with defining and operationalizing transaction costs within institutional and organizational economics?
This theme addresses the conceptual ambiguity and difficulties in the operationalization of 'transaction costs' in New Institutional Economics (NIE) and related fields. It matters because the explanatory power of transaction cost theory for institutions and organizations depends on precise definitions and measurable constructs. Ambiguities reduce the theory’s empirical testability and limit its utility in explaining the emergence and evolution of firms, markets, and governance structures.
Key finding: This critical analysis identifies divergent uses of the transaction cost concept across market, supervisory, and property rights lenses, noting that such ambiguity hampers its analytical clarity. The paper argues that... Read more
Key finding: This comprehensive review synthesizes empirical applications of transaction cost economics across business and social science disciplines, revealing growing acceptance but also significant theoretical and methodological... Read more
Key finding: This tribute paper outlines Williamson’s scholarly trajectory in institutional economics, emphasizing his pioneering role in formalizing transaction cost economics (TCE). It documents how his interdisciplinary approach... Read more
Key finding: The paper extends the discussion of transaction costs into the digital economy, examining how information technology influences human and environmental factors underlying transaction costs and governance structures. It... Read more
3. How do platform design and pricing strategies in multi-sided markets influence transaction costs, market participation, and welfare outcomes?
Research in this area focuses on the interaction between platform fee structures (commissions and subscriptions), network effects, compatibility between user types, and their joint impact on platform revenue, market participation, and social welfare. This is crucial in understanding digital and networked market environments where intermediaries facilitate transactions without directly controlling prices, affecting transaction costs and resulting market efficiencies or inefficiencies.
Key finding: This work models a platform charging type-specific commissions and subscriptions to buyers and sellers linked via a bipartite compatibility network, deriving convex optimization methods to identify revenue-maximizing fees. It... Read more
Key finding: Examining symmetric platform competition with heterogeneous customer membership benefits and multi-sided network externalities, this paper demonstrates that increased platform competition can perversely raise equilibrium... Read more
Key finding: This chapter surveys theoretical and empirical literature on two-sided markets, emphasizing the complex role of indirect network effects on pricing and platform competition. It shows how pricing decisions on one side affect... Read more
Key finding: Using panel data on 18 African stock exchanges, this study finds that migration to electronic trading platforms decreases trading activity (participation turnover) but increases the number of listed stocks. The results... Read more
Key finding: This survey assesses empirical evidence on market fragmentation, internalisation, and transparency, revealing that competition among multiple trading venues fosters innovation, reduces explicit transaction costs, and offers... Read more