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Search Cost
Search costs are a facet of transaction costs or switching costs and include all the costs associated with the searching activity conducted by a prospective seller and buyer in a market. Rational consumers will continue to search for a better product or service until the marginal cost of searching exceeds the marginal benefit. Search theory is a branch of microeconomics that studies decisions of this type. The costs of searching are divided into external and internal costs. External costs include the monetary costs of acquiring the information, and the opportunity cost of the time taken up in searching. External costs are not under the consumer's control, and all he or she can do is choose whether or not to incur them. Internal costs include the mental effort given over to undertaking the search, sorting the incoming information, and integrating it with what the consumer already knows. Internal costs are determined by the consumer's ability to undertake the search, and this in turn ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Transaction Cost
In economics, a transaction cost is a cost incurred when making an economic trade when participating in a market. The idea that transactions form the basis of economic thinking was introduced by the institutional economist John R. Commons in 1931. Oliver E. Williamson's ''Transaction Cost Economics'' article, published in 2008, popularized the concept of transaction costs. Douglass C. North argues that institutions, understood as the set of rules in a society, are key in the determination of transaction costs. In this sense, institutions that facilitate low transaction costs can boost economic growth.North, Douglass C. 1992. "Transaction costs, institutions, and economic performance", San Francisco, CA: ICS Press. Alongside production costs, transaction costs are one of the most significant factors in business operation and management. Definition Williamson defines transaction costs as a cost innate in running an economic system of companies, comprising the total costs of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cost
Cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this case, money is the input that is gone in order to acquire the thing. This acquisition cost may be the sum of the cost of production as incurred by the original producer, and further costs of transaction as incurred by the acquirer over and above the price paid to the producer. Usually, the price also includes a mark-up for profit over the cost of production. More generalized in the field of economics Economics () is a behavioral science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interac ..., cost is a metric that is totaling up as a result of a process ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ingemar Ståhl
Ingemar Ståhl (June 2, 1938 – February 6, 2014) was a Swedish economist and an economics professor from Lund University. Life Ståhl was born on June 2, 1938, in Stockholm, Sweden. He graduated, with a bachelor degree, in 1958 in the Stockholm University. He earned his Licentiate of Philosophy in 1965 at the Lund University. Ståhl was married to Solveig Ståhl, whom he had three children: Nils Ståhl, Pernilla Ståhl, and Ingela Ståhl. He died on February 6, 2014, in Lund, Sweden at the age of 75. Career For 25 years, Ståhl was a member of Ragnar Söderberg Foundation, an organization dedicated to scientific researches. Ståhl has also worked as an Advisor to the Cabinet Office of the Government of Sweden and the Organisation for Economic Co-operation and Development (OECD). Since 1982, he was also a member of the Royal Swedish Academy of Engineering Sciences. Nobel Prize Ståhl was part of the Committee for the Prize in Economic Sciences in Memory of Alfred Nobel ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Homogeneity And Heterogeneity
Homogeneity and heterogeneity are concepts relating to the uniformity of a substance, process or image. A homogeneous feature is uniform in composition or character (i.e., color, shape, size, weight, height, distribution, texture, language, income, disease, temperature, radioactivity, architectural design, etc.); one that is heterogeneous is distinctly nonuniform in at least one of these qualities. Etymology and spelling The words ''homogeneous'' and ''heterogeneous'' come from Medieval Latin ''homogeneus'' and ''heterogeneus'', from Ancient Greek ὁμογενής (''homogenēs'') and ἑτερογενής (''heterogenēs''), from ὁμός (''homos'', "same") and ἕτερος (''heteros'', "other, another, different") respectively, followed by γένος (''genos'', "kind"); -ous is an adjectival suffix. Alternate spellings omitting the last ''-e-'' (and the associated pronunciations) are common, but mistaken: ''homogenous'' is strictly a biological/pathological term whic ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Price Dispersion
In economics, price dispersion is variation in prices across sellers of the same item, holding fixed the item's characteristics. Price dispersion can be viewed as a measure of trading frictions (or, tautologically, as a violation of the law of one price). It is often attributed to consumer search costs or unmeasured attributes (such as the reputation) of the retailing outlets involved. There is a difference between price dispersion and price discrimination. The latter concept involves a single provider charging different prices to different customers for an identical good. Price dispersion, on the other hand, is best thought of as the outcome of many firms potentially charging different prices, where customers of one firm find it difficult to patronize (or are perhaps unaware of) other firms due to the existence of search costs. Price dispersion measures include the range of prices, the percentage difference of highest and lowest price, the standard deviation of the price distribu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Monopoly Price
In microeconomics, a monopoly price is set by a monopoly.Roger LeRoy Miller, ''Intermediate Microeconomics Theory Issues Applications, Third Edition'', New York: McGraw-Hill, Inc, 1982.Tirole, Jean, "The Theory of Industrial Organization", Cambridge, Massachusetts: The MIT Press, 1988. A monopoly occurs when a firm lacks any viable competition and is the sole Production (economics), producer of the industry's product. Because a monopoly faces no Competition (economics), competition, it has absolute market power and can set a price above the firm's marginal cost. The monopoly ensures a monopoly price exists when it establishes the quantity of the product. As the sole supplier of the product within the market, its sales establish the entire industry's supply (economics), supply within the market, and the monopoly's production and sales decisions can establish a single price for the industry without any influence from competing firms.John Black, "Oxford Dictionary of Economics", New ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Law Of One Price
In economics, the law of one price (LOOP) states that in the absence of trade frictions (such as transport costs and tariffs), and under conditions of free competition and price flexibility (where no individual sellers or buyers have power to manipulate prices and prices can freely adjust), identical goods sold at different locations should be sold for the same price when prices are expressed in a common currency. This law is derived from the assumption of the inevitable elimination of all arbitrage. See . Overview The intuition behind the law of one price is based on the assumption that differences between prices are eliminated by market participants taking advantage of arbitrage opportunities. There are three pre-requisites underlying the law: *Absence of trade frictions *Free competition *Price flexibility. Examples In regular trade Assume different prices for a single identical good in two locations, no transport costs, and no economic barriers between the two locations. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Equilibrium
Equilibrium may refer to: Film and television * ''Equilibrium'' (film), a 2002 science fiction film * '' The Story of Three Loves'', also known as ''Equilibrium'', a 1953 romantic anthology film * "Equilibrium" (''seaQuest 2032'') * ''Equilibrium'', short film by Steven Soderbergh, a segment of ''Eros'' * "Equilibrium" (''Star Trek: Deep Space Nine''), Star Trek DS9 Episode 4, Season 3 Music * Equilibrium (band), a folk metal band from Germany * ''Equilibrium'' (Crowbar album), 2000 * ''Equilibrium'' (Erik Mongrain album), 2008 * ''Equilibrium'' (God Forbid album), 2012 * ''Equilibrium'' (Whitecross album), 1995 * ''Equilibrium'' (Matthew Shipp album), 2003 * '' IX Equilibrium'', a 1999 album by Emperor * ''Equilibrium'', an album by Fergie Frederiksen Natural sciences * Chemical equilibrium * Equilibrium chemistry * Equilibrium point of differential equations * Mechanical equilibrium * Thermodynamic equilibrium Social sciences * Cognitive equilibration in psych ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economy
An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the production, use, and management of resources. A given economy is a set of processes that involves its culture, values, education, technological evolution, history, social organization, political structure, legal systems, and natural resources as main factors. These factors give context, content, and set the conditions and parameters in which an economy functions. In other words, the economic domain is a social domain of interrelated human practices and transactions that does not stand alone. Economic agents can be individuals, businesses, organizations, or governments. Economic transactions occur when two groups or parties agr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Agent (economics)
In economics, an agent is an actor (more specifically, a decision maker) in a model of some aspect of the economy. Typically, every agent makes decisions by solving a well- or ill-defined optimization or choice problem. For example, ''buyers'' (consumers) and ''sellers'' ( producers) are two common types of agents in partial equilibrium models of a single market. Macroeconomic models, especially dynamic stochastic general equilibrium models that are explicitly based on microfoundations, often distinguish households, firms, and governments or central banks as the main types of agents in the economy. Each of these agents may play multiple roles in the economy; households, for example, might act as consumers, as workers, and as voters in the model. Some macroeconomic models distinguish even more types of agents, such as workers and shoppers or commercial banks. The term ''agent'' is also used in relation to principal–agent models; in this case, it refers specifically to someone ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Empiricism
In philosophy, empiricism is an epistemological view which holds that true knowledge or justification comes only or primarily from sensory experience and empirical evidence. It is one of several competing views within epistemology, along with rationalism and skepticism. Empiricists argue that empiricism is a more reliable method of finding the truth than purely using logical reasoning, because humans have cognitive biases and limitations which lead to errors of judgement. Empiricism emphasizes the central role of empirical evidence in the formation of ideas, rather than innate ideas or traditions. Empiricists may argue that traditions (or customs) arise due to relations of previous sensory experiences. Historically, empiricism was associated with the " blank slate" concept (''tabula rasa''), according to which the human mind is "blank" at birth and develops its thoughts only through later experience. Empiricism in the philosophy of science emphasizes evidence, especi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Monopoly
A monopoly (from Greek language, Greek and ) is a market in which one person or company is the only supplier of a particular good or service. A monopoly is characterized by a lack of economic Competition (economics), competition to produce a particular thing, a lack of viable substitute goods, and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit. The verb ''monopolise'' or ''monopolize'' refers to the ''process'' by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge Monopoly price, overly high prices, which is associated with unfair price raises. Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry (or market). A monopoly may als ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
