The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Transaction Costs

  • Jürg Niehans
Reference work entry


Transaction costs arise from the transfer of ownership or, more generally, of property rights. They are a concomitant of decentralized ownership rights, private property and exchange. In a collectivist economy with completely centralized decision-making they would be absent; administrative costs would take their place.

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Jürg Niehans
    • 1
  1. 1.