Transaction costs
Costs incurred when conducting transactions
search cost
Costs incurred in decision making
The cost of finding the goods you are looking for in the marketplace
Cost of identifying who is the cheapest
negotiation cost
Cost required to reach agreement
Cost required to enter into a contract
Cost of Supervision and Enforcement
Cost required to enforce compliance with the contract
Cost of knowing if you are honoring your contract
Oliver Williamson
2009 Nobel Prize in Economics Transaction Cost Theory
Factors that determine transaction costs are human limited rationality and Opportunistic Behavior, Frequency of transactions and asset specificity and uncertainty.
Transaction costs - Wikipedia
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