Two kinds of consumer switching costs

Article Abstract:

An explanation of two consumer switching costs is presented. Transaction costs are costs of a consumer when switching or changing suppliers while learning costs are the costs which a consumer bears when he changes to a new supplier or product. The two costs are different in that transaction costs are made when suppliers are changed while learning costs are incurred at the first instance of supplier change. It was suggested that additions to transaction costs compared to learning costs result in price increases to consumers thereby lessening welfare.

Research, Models, Finance, Consumer preferences, Consumers, Price discrimination, Cost (Economics), Costs (Economics)

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Politics and social costs: estimating the impact of collective action on hazardous waste facilities

Article Abstract:

An analysis of the impact of collective action on the location and management of hazardous waste sites is presented. The analysis focuses on the level of internalization firms exhibit for externalities and its relation to the surrounding area residents' organizational ability to oppose it. Results show that hazardous waste firms consider the possibility of neighborhood opposition in deciding the location of their facilities.

Economic aspects, Location, Hazardous waste management industry, Hazardous waste sites

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Transaction costs and the design of cropshare contracts

Article Abstract:

A study was conducted to examinethe viability of modern cropshare contracts. The study was based on data from a1986 survey of Nebraska and South Dakota farmers and landowners. A model describing risk-neutral agents and wealth-optimizing contract rules is developed for the study. Results show that farmers either finances total costs or shares them with landowners in agreed output proportions.

Contracts, Farmers, Crops, Crops (Plants), Contracts, Agricultural, Agricultural contracts

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