In which article did Coase introduce the concept of transaction costs?
The Nature of the Firm
The General Theory
Market Behaviors
Economic Analysis
Answer
In "The Nature of the Firm," Coase introduced the concept of transaction costs, defining them as the costs incurred in organizing an economic transaction between parties. These include the costs of searching for information, negotiating, and enforcing contracts, and they depend on the institutional and technological environment. Transaction costs are crucial in determining the boundaries of the firm and the optimal allocation of resources within the economy.
Coase's Economic Conundrums: Unraveling the Legacy of a Nobel Laureate
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