e-journal

The tragedy of the private:transaction cost considerations

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The purpose of this paper is to weigh the benefits and costs of public property, as opposed
to private, from the transaction cost perspective. In the absence of transaction costs, private property
has clear advantages over public. However, when the true costs of running an economic system are
taken into account, the advantages of private property are not so evident and public property may turn
out to be the preferred form of ownership. The paper shows that in high-transaction cost sectors
and economies such as the newly emerging markets in Eastern Europe, public property is a cheaper
way of organizing economic activities, as it can save on transaction costs. The paper demonstrates
these virtues of public ownership in relation to market failure, the provision of public goods, natural
monopolies and competitive industries with a high degree of market uncertainty, opportunism and
asset specificity.
Design/methodology/approach – A qualitative paper discussing the advantages of public over
private property in the presence of high-transaction costs.
Findings – Studying different types of market failure the paper finds that public property is
advantageous to private in high-transaction cost systems.
Originality/value – Since most of the standard literature emphasizes the advantages of private
property, the paper gives an economic explanation to those of public property taking on a new
institutional approach and conducting a transaction cost analysis.

Keywords Economic theory, Developing countries, Citizenship, Marxist economics

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Ketersediaan

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Informasi Detail

Judul Seri

International Journal of Social Economics

No. Panggil

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Penerbit

: Emerald Group., 2014

Deskripsi Fisik

International Journal of Social Economics Vol. 41 No. 6, 2014

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

EKONOMI

Info Detail Spesifik

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Pernyataan Tanggungjawab

Asmawati/Syahrial

Versi lain/terkait

Lampiran Berkas

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