The modern firm is discussed from the viewpoint of R. Cose’s theory of transaction costs. The issue of management and price mechanism as alternative methods of allocating economic resources is analyzed. The company growth limits are defined and the nature of transaction costs is given,...

The state plays a role in reducing the transaction costs of an economic system. While the scholarly focus seems to be on the indirect role of the state through the legal system and the definition and enforcement of property rights, economists seem to overlook the direct role the state has to...

Using a simple job market equilibrium model we study the relationship between work effort and monitoring by firms. Some other determinants of work effort investigated include the educational level of the worker, the minimum or start-up salary as well as the economic conjuncture. As common logic...

Economic theory provides various explanations for vertical integration but transaction costs seem to be a major determinant of backward, forward and lateral integration. The paper studies integration trends in the newly emerging Bulgarian pharmaceutical sector, seeking transaction cost...

Our paper studies the causes of poverty from the perspective of job search. We show that poor people remain poor because they have less time and initial endowment to search for a better job. Initial endowment is key to successful job search, as one can afford not to work and search longer for a...

Few textbooks in mathematical economics cover optimal timing problems. Those which cover them do it scantly or in a rather clumsy way, making it hard for students to understand and apply the concept of optimal time in new contexts. Discussing the plentiful illustrations of optimal timing...

Rental rate gives the opportunity cost of a machine, that is, it accounts for the opportunities forgone by using the machine or self-renting it instead of renting it out to someone else. While the traditional approach studies how the rate at which a machine can be rented depends on the market...

The paper explores the quality problem as a major challenge before transitional economies. It uses Akerlof’s model of misrepresented quality in an attempt to study it as the reason for market failure in the new democracies. The determinants of poor quality in the region of Eastern Europe are...

Few textbooks in mathematical economics cover optimal timing problems. Those which cover them do it scantly or in a rather clumsy way, making it hard for students to understand and apply the concept of optimal time in new contexts. Discussing the plentiful illustrations of optimal timing...

Before and after Coase - The Role of Transaction Costs