Abstract
While packages of potato chips, bottles of drinks and shampoo on the supermarket shelves are classified as an invitation to offer, medicine in the pharmacy is classified as an invitation to treat. Why are products with a different nature classified differently? This chapter proposes that transaction costs provide the answer to the question.
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Acknowledgments
This chapter is a revised version of a book chapter previously published in Li, Rita Yi Man (2011) Everyday life application of Neo-institutional Economics Lambert Academic Publishing, Saarbrucken, Germany. The author would like to thank the publisher for granting the right to republish with substantial changes.
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Li, Y.L., Li, R.Y.M. (2014). An Offer, An Invitation to Treat and Transaction Costs. In: Law, Economics and Finance of the Real Estate Market. SpringerBriefs in Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-54245-9_7
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DOI: https://doi.org/10.1007/978-3-642-54245-9_7
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