Analysis on transaction cost under electronic commerce

Lei Wang

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E-commerce and Technology Innovations Economic Theory and Institutions Outsourcing and Supply Chain Management

Abstract

Ecnomics of transaction cost considered, transaction cost is lack, transaction cost is not zero. The aim of exist of enterprises is to save transaction cost. Electronic commerce is not the same transaction form as traditional transaction. It could reduce boundary transaction cost through reducing the trasaction cost of preceding trasaction, middle trasaction and back trasaction of enterprises. Because of the fall of boundary transaction cost, the boundary organization cost must be reduced, so as to reduce the size of enterprises. Enterprises must think of such change when enterprises make investment decision under electronic commerce.

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