Transaction innovation and the role of the firm

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Advances in Applied Microeconomics

ISSN: 0278-0984
Series editor(s): Professor Michael Baye, Professor John Maxwell

Subject Area: Economics

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Document Information:
Title:	Transaction innovation and the role of the firm
Author(s):	Daniel F. Spulber
Volume:	11 Editor(s): Michael R. Baye ISBN: 978-0-76230-971-9 eISBN: 978-1-84950-182-8
Citation:	Daniel F. Spulber (2002), Transaction innovation and the role of the firm, in Michael R. Baye (ed.) The Economics of the Internet and E-commerce (Advances in Applied Microeconomics, Volume 11), Emerald Group Publishing Limited, pp.159-189
DOI:	10.1016/S0278-0984(02)11031-5 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Article type:	Full length article
Abstract:	Advances in computers and telecommunications and the development of the Internet have been applied to develop new transaction technologies that lower transaction costs. By lowering transaction costs, these changes in transaction technology make possible transaction innovation, that is, the development of new types of market transactions. Transaction innovation changes not only business methods and organizational design, but the content of transactions and the way that markets are organized. I consider the impact of transaction innovation on the role of the firm in various economic activities including market clearing, auction design, price adjustment, quality certification, and agency.