There Are Two Necessary Conditions for the Existence of Transactions

question 27

Essay

There are two necessary conditions for the existence of transactions costs: costly and asymmetric information. Compare and contrast them.

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Definitions:

Objectivity

The practice of maintaining impartiality and neutrality, avoiding bias and subjective influences in research, reporting, and analysis.

Bias

Prejudice in favor of or against one thing, person, or group compared with another, often in a way considered to be unfair.

Inductive Reasoning

A logical process in which multiple premises, all believed true or found true most of the time, are combined to obtain a specific conclusion.

Deductive Reasoning

A logical process where a conclusion follows necessarily from the stated premises, moving from the general to the specific.