Information asymmetry and transaction costs in a cross-cultural business transaction

The intent of this paper is to provide a practitioners insight into the present and foreseeable future of problem of transaction cost economics related to culture and business etiquette that may increase the of complexity of business communication. We will also explore whether it impacts participant's mindsets regarding opportunistic or passive aggressive behavior. We will study the role of culture, ethics, information asymmetry, and legal systems regarding their importance towards the business contracts and lack of knowledge in local environments. We will make connections to contract theory strategies and objectives and recommend business practices. Furthermore, economic theory explores the role of the impossibility of the perfect contract. Historical and present day operational factors are examined for the determination of forward-looking contract law indications worldwide. This paper is intended provide a practitioners view with a global perspective of a multinational, mid-sized and small corporations giving consideration in a non-partisan and non-nationalistic view, yet examines the individual characteristics of the operational necessities and obligations of any corporation. The study will be general, yet cite specific articles to each argument and give adequate consideration to the intricacies of the global asymmetry of information. This paper defends that corporations of any kind and size should be aware of the risk of international business etiquette and cultural barriers that might jeopardize the savings you could obtain from engaging international suppliers.

Transaction costs in the transportation sector and infrastructure in North America: exploring harmonization of standards

Includes bibliography

LUTS: A lightweight user-level transaction scheduler

Software Transactional Memory (STM) systems have poor performance under high contention scenarios. Since many transactions compete for the same data, most of them are aborted, wasting processor runtime. Contention management policies are typically used to avoid that, but they are passive approaches as they wait for an abort to happen so they can take action. More proactive approaches have emerged, trying to predict when a transaction is likely to abort so its execution can be delayed. Such techniques are limited, as they do not replace the doomed transaction by another or, when they do, they rely on the operating system for that, having little or no control on which transaction should run. In this paper we propose LUTS, a Lightweight User-Level Transaction Scheduler, which is based on an execution context record mechanism. Unlike other techniques, LUTS provides the means for selecting another transaction to run in parallel, thus improving system throughput. Moreover, it avoids most of the issues caused by pseudo parallelism, as it only launches as many system-level threads as the number of available processor cores. We discuss LUTS design and present three conflict-avoidance heuristics built around LUTS scheduling capabilities. Experimental results, conducted with STMBench7 and STAMP benchmark suites, show LUTS efficiency when running high contention applications and how conflict-avoidance heuristics can improve STM performance even more. In fact, our transaction scheduling techniques are capable of improving program performance even in overloaded scenarios. © 2011 Springer-Verlag.

Transaction scheduling using dynamic conflict avoidance

Software transaction memory (STM) systems have been used as an approach to improve performance, by allowing the concurrent execution of atomic blocks. However, under high-contention workloads, STM-based systems can considerably degrade performance, as transaction conflict rate increases. Contention management policies have been used as a way to select which transaction to abort when a conflict occurs. In general, contention managers are not capable of avoiding conflicts, as they can only select which transaction to abort and the moment it should restart. Since contention managers act only after a conflict is detected, it becomes harder to effectively increase transaction throughput. More proactive approaches have emerged, aiming at predicting when a transaction is likely to abort, postponing its execution. Nevertheless, most of the proposed proactive techniques are limited, as they do not replace the doomed transaction by another or, when they do, they rely on the operating system for that, having little or no control on which transaction to run. This article proposes LUTS, a lightweight user-level transaction scheduler. Unlike other techniques, LUTS provides the means for selecting another transaction to run in parallel, thus improving system throughput. We discuss LUTS design and propose a dynamic conflict-avoidance heuristic built around its scheduling capabilities. Experimental results, conducted with the STAMP and STMBench7 benchmark suites, running on TinySTM and SwissTM, show how our conflict-avoidance heuristic can effectively improve STM performance on high contention applications. © 2012 Springer Science+Business Media, LLC.

Fuzzy rule-based system for evaluation of uncertainty transaction in cassava chain

A fuzzy ruled-based system was developed in this study and resulted in an index indicating the level of uncertainty related to commercial transactions between cassava growers and their dealers. The fuzzy system was developed based on Transaction Cost Economics approach. The fuzzy system was developed from input variables regarding information sharing between grower and dealer on “Demand/purchase Forecasting”, “Production Forecasting” and “Production Innovation”. The output variable is the level of uncertainty regarding the transaction between seller and buyer agent, which may serve as a system for detecting inefficiencies. Evidences from 27 cassava growers registered in the Regional Development Offices of Tupa and Assis, São Paulo, Brazil, and 48 of their dealers supported the development of the system. The mathematical model indicated that 55% of the growers present a Very High level of uncertainty, 33% present Medium or High. The others present Low or Very Low level of uncertainty. From the model, simulations of external interferences can be implemented in order to improve the degree of uncertainty and, thus, lower transaction costs.

Recovery and Analysis of Transaction Scope from Scattered Information in Java Enterprise Applications

Java Enterprise Applications (JEAs) are large systems that integrate multiple technologies and programming languages. Transactions in JEAs simplify the development of code that deals with failure recovery and multi-user coordination by guaranteeing atomicity of sets of operations. The heterogeneous nature of JEAs, however, can obfuscate conceptual errors in the application code, and in particular can hide incorrect declarations of transaction scope. In this paper we present a technique to expose and analyze the application transaction scope in JEAs by merging and analyzing information from multiple sources. We also present several novel visualizations that aid in the analysis of transaction scope by highlighting anomalies in the specification of transactions and violations of architectural constraints. We have validated our approach on two versions of a large commercial case study.

Transaction Costs, Production Costs, and the Passage of Time

No abstract available.

The Secret Life of Mundane Transaction Costs

Transaction costs, one often hears, are the economic equivalent of friction in physical systems. Like physicists, economists can sometimes neglect friction in formulating theories; but like engineers, they can never neglect friction in studying how the system actually does let alone should work. Interestingly, however, the present-day economics of organization also ignores friction. That is, almost single-mindedly, the literature analyzes transactions from the point of view of misaligned incentives and (especially) transaction-specific assets. The costs involved are certainly costs of running the economic system in some sense, but they are not obviously frictions. Stories about frictions in trade are not nearly as intriguing as stories about guileful trading partners and expensive assets placed at risk. But I will argue that these seemingly dull categories of cost what Baldwin and Clark (2003) call mundane transaction costs actually have a secret life. They are at least as important as, and quite probably far more important than, the more glamorous costs of asset specificity in explaining the partition between firm and market. These costs also have a secret life in another sense: they have a secret life cycle. I will argue that these mundane transaction costs provide much better material for helping us understanding how the boundaries among firms, markets, and hybrid forms change over time.

Risk, Transaction Costs, and Tax Assignment: Government Finance in the Ottoman Empire

Risk and transaction costs often provide competing explanations of institutional outcomes. In this paper we argue that they offer opposing predictions regarding the assignment of fixed and variable taxes in a multi-tiered governmental structure. While the central government can pool regional risks from variable taxes, local governments can measure variable tax bases more accurately. Evidence on tax assignment from the mid-sixteenth century Ottoman Empire supports the transaction cost explanation, suggesting that risk matters less because insurance can be obtained in a variety of ways.

Measuring the costs of FTA utilization : evidence from transaction-level import data of Thailand

In this study, we measure the utilization costs of free trade agreement (FTA) tariff schemes. To do that, we use shipment-level customs data on Thai imports, which identify not only firms, source country, and commodity but also tariff schemes. We propose several measures as a proxy for FTA utilization costs. The example includes the minimum amount of firm-level savings on tariff payments, i.e., trade values under FTA schemes multiplied by the tariff margin, in all transactions. Consequently, the median costs for FTA utilization in 2008, for example, are estimated to be approximately US$2,000 for exports from China, US$300 for exports from Australia, and US$1,000 for exports from Japan. We also found that FTA utilization costs differ by rule of origin and industry.

Stability and Transient Performance Assessment in a COTS-Module-Based Distributed DC/DC System

This paper introduces a method to analyze and predict stability and transient performance of a distributed system where COTS (Commercial-off-the-shelf) modules share an input filter. The presented procedure is based on the measured data from the input and output terminals of the power modules. The required information for the analysis is obtained by performing frequency response measurements for each converter. This attained data is utilized to compute special transfer functions, which partly determine the source and load interactions within the converters. The system level dynamic description is constructed based on the measured and computed transfer functions introducing cross-coupling mechanisms within the system. System stability can be studied based on the well-known impedance- related minor-loop gain at an arbitrary interface within the system.