Risks and reputations: the economics of transaction costs
Corporate Communications: An International Journal
ISSN: 1356-3289
Article publication date: 1 January 1998
Abstract
Uncertainty means that transaction costs have to be incurred by organisations whenever they make an agreement. These costs include time and money spent searching, drawing up and enforcing contracts and in dealing with contingencies. The concept of transaction costs is traced from its originator, economist Ronald Coase, to its more recent development by David Kreps. Good reputations, themselves a product of successful corporate communications activities, tend to reduce internal and external transaction costs. Given a competitive environment those firms with lower transaction costs, as a result of high reputations, will tend to survive better than those with weak ones.
Keywords
Citation
Burke, T. (1998), "Risks and reputations: the economics of transaction costs", Corporate Communications: An International Journal, Vol. 3 No. 1, pp. 5-10. https://doi.org/10.1108/eb046547
Publisher
:MCB UP Ltd
Copyright © 1998, MCB UP Limited