IDEAS home Printed from https://ideas.repec.org/a/prs/recind/rei_0154-3229_2000_num_92_1_1043.html
   My bibliography  Save this article

Transaction Costs and Incentive Theory

Author

Listed:
  • Eric Malin
  • David Martimort

Abstract

[fre] Cet article propose de réconcilier la théorie des incitations et la théorie des coûts de transaction. Nous rappelons dans un premier temps les hypothèses fondamentales sous-tendant le Principe de Révélation utilisé dans la théorie des mécanismes incitatifs. Nous montrons comment des incomplétudes contractuelles et certaines externalités induites par ces coûts de transaction affectent l'arbitrage entre efficacité allocative et rentes informationnelles. Nous proposons alors des formes réduites permettant de décrire précisément l'impact de ces coûts de transaction dans un certain nombre de contextes contractuels. [eng] This paper tries to reconcile incentive theory with transaction costs theory. We first discuss the fundamental assumptions underlying the use of the Revelation Principle in the standard mechanism design literature and show how various contractual incompletenesses and externalities induced by transaction costs affect the basic trade-off between allocative efficiency and informational rents highlighted by this literature. We then propose reduced form formula to precisely describe the impact of these transaction costs in various contexts.

Suggested Citation

  • Eric Malin & David Martimort, 2000. "Transaction Costs and Incentive Theory," Revue d'Économie Industrielle, Programme National Persée, vol. 92(1), pages 125-148.
    • Handle: RePEc:prs:recind:rei_0154-3229_2000_num_92_1_1043
    DOI: 10.3406/rei.2000.1043
    Note: DOI:10.3406/rei.2000.1043
    as

    Download full text from publisher

    File URL: https://doi.org/10.3406/rei.2000.1043
    Download Restriction: no
    File URL: https://www.persee.fr/doc/rei_0154-3229_2000_num_92_1_1043
    Download Restriction: no
    File URL: https://libkey.io/10.3406/rei.2000.1043?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Müller, Daniel & Schmitz, Patrick W., 2016. "Transaction costs and the property rights approach to the theory of the firm," European Economic Review, Elsevier, vol. 87(C), pages 92-107.
    2. Yannis Karagiannis, 2007. "Foundational Economic Theories for Political-Scientific Inter-Branch Studies," RSCAS Working Papers 2007/16, European University Institute.
    3. Albert N. Honlonkou & Rashid M. Hassan, 2015. "Developing Countries' Response To The Clean Development Mechanism Under Imperfect Information And Transaction Costs," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 1-22.
    4. Raul V. Fabella, 2016. "Why Fixed Rent Contracts are Less Prevalent: Weak Third Party Enforcement and Endogenous Principal Type," UP School of Economics Discussion Papers 201606, University of the Philippines School of Economics.
    5. Offer, Avner, 2013. "Economy of liabilities: incomplete contracts and the cost of social-oriented state," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, pages 109-126, April.
    6. Yannis Karagiannis, 2007. "Economic Theories and the Science of Inter-Branch Relations," RSCAS Working Papers 2007/04, European University Institute.

    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prs:recind:rei_0154-3229_2000_num_92_1_1043. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Equipe PERSEE (email available below). General contact details of provider: https://www.persee.fr/collection/rei .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.