Changing Markets and Institutions

Transaction costs – costs caused by the exchange of goods and services in economic systems – are as important as costs caused by the production of those goods and services. Efficient coordination of transactions in markets and companies by institutional design constantly offers new challenges for states as well as for companies within an unwavering, further intensifying, global competition.

Digitalization of economic processes does not only change the scale (Big Data) but also the matter of economic transactions. Economic analysis and applications deal with effectiveness of market imperfections and its control by governance structures and contractual incentive systems.