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• Transaction costs in the standardization of mobile telephone systems. The case of Japanese mobile standards

  83-97

  Istvan Kovacs

  Views:

  112

  Although there have been papers concerned with the connection between standardization and transaction costs, they have analyzed how standards decrease transaction costs. This paper shows that transaction costs emerge during the standardization process. If the creation of a standard is seen as a transaction, in which the parties exchange their explicit and implicit knowledge, standardization can be analyzed from the viewpoint of Transaction Costs Economics. Undoubtedly the knowledge of the parties is a specific asset, exchange of which causes significant transaction costs; therefore opportunism plays a crucial role
  during standardization. In this paper I show that the standardization of mobile phone systems can be analyzed in the framework set up by Teece (1986) in order to point out how transaction costs could be decreased in particular cases. The standardization of second generation mobile systems in Japan illustrates the statements made in the theoretical part of the paper.

  Journal of Economic Literature (JEL) classifications: D23, O31, L96

• Trust as a Cost Reducing Factor

  74-84

  Anett Hodosi

  Views:

  205

  The current study analyzes the cost reducing feature of one of the well-researched informal institutions, trust. The micro level analysis is followed by a macro level approach, which is aimed at highlighting trust’s direct cost reducing element via transaction costs and its indirect effect through the legal system. As part of the latter an empirical evaluation of 25 European Union countries has been carried out regarding the connection between costs due to administrative burden and trust. On the one hand academic economic literature proves that trust reduces transaction costs, and on the other hand that the effectiveness of the legal system contributes to the decrease of transaction costs. According to our assumption the increase of the level of trust improves the effectiveness of the legal system and via this
  mechanism it supports the reduction of transaction costs.

  JEL classification: D02, E02

• Growth theory from an Austiran institutional perspective

  157-174

  Pal Czegledi

  Views:

  125

  Perhaps the one fundamental question of growth theory is why some countries are poor while others are rich. The paper identifies two main lines of research approaching this question, by applying the social analysis of Williamson, and points out that both approaches give an asymmetric answer. The paper applies a critique, which was formulated in the theory of the firm, and compares it with a transaction cost approach. According to this critique, the one approach to economic growth lays too much emphasis on technology, while the other neglects the technological side and emphasizes only the transaction costs and incentives. This paper argues that a new approach, based on the insights of modern Austrian economics, is able to integrate these two sides.