Advances in New Institutional Analysis series
Chapter 1: Introduction
This chapter gives a first impression of the increasing importance of managing transaction costs in the era of globalization. It defines the skill of keeping transaction costs low as transaction cost management, or shortly, transaction management, and explains its role in transaction economies. By keeping the costs of trade transactions as low as possible, the value creation from these transactions is optimized. Here, trade transactions are defined in the broadest sense, including all kind of transactions which specialization and the resulting need for coordination bring about. This chapter also contains a reading guide for the book.