Fifth International World Wide Web Conference

Economics of Web Based Business

Appropriate Framework -- Transaction Cost Economics

A Firm Operates Within A Market But Is Also A Negation Of The Market -- Replaces Market With Command And Control
Depending On Transaction Costs Some Activities Are Organized Through Firms,Some Through Markets
Markets Reduce Tranasaction Costs
Less Organized The Market, Higher The Transaction Costs
Historically, Reduction In Cost Of Disseminating Information=Reduction In Transaction Costs

Transaction (Or Exchange) Costs:

TC Economics Moves Away From The Simplistic Assumption Of Homogeneous Exchange Mechanisms Through Price Mechanisms
Non-price Costs Are Treated As Basic Unit Of Analysis
Five Sources Of Transaction Costs:
- Bounded Rationality
- Opportunism
- Market Uncertainty
- Asset Specificity
- Information Impactedness
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Conference Presentation (Somendra Pant)