transaction cost
3
4.1
- noun
- /trænˈzækʃən kɔst/
- Specialized
:
costo de transacción
- Many small businesses struggle with transaction costs that arise from negotiating deals and ensuring agreements are upheld.
- high transaction costs
- low transaction costs
- increase the transaction costs
They do this both to minimize transaction costs and for tax efficiency.
- They do this both to minimize transaction costs and for tax efficiency.
- And that's before taking into account storage costs, insurance costs, transaction costs, and so on.
- Certainly you couldn't solve with something like microfinance that was obviously not viable, that interest rates were high, the transaction costs were crazy.
- Okay, so Next up the topic of transaction costs.
Examples
-
The municipal government programs described here have been designed to reduce the transaction costs significantly.
Academic text (1993) -
Barriers to emigration, including high transaction costs, are like tariff protection for the producers of money.
Academic text (1990) -
Improvements in information technology reduce transaction costs and therefore reduce the demand for banks to hold reserves.
Academic text (2017) -
Let me list some of the main advantages other than the reduction in transaction costs.
Academic text (1990) -
In this case, there are efficiency gains associated with the reduction in transaction costs and risk.
Academic text (1992) -
There are inherent risks and high transaction costs associated with spot market participation.
Academic text (1992) -
Note that in the model above, transaction costs are the primary reason for portfolio diversification.
Academic text (2017) -
In this case, utilities can help cut the transaction costs associated with selecting and installing suitable measures.
Academic text (1994) -
All the participants appeared confident that the single permit would, in time, reduce transaction costs and increase operational flexibility.
Academic text (1997) -
They do this both to minimize transaction costs and for tax efficiency.
Synonyms
∞
1.0
The amount of money needed to buy or do something
How Costly
Surface Forms
Morphology
The phrase is a straightforward noun + noun compositional construction: 'cost' of a 'transaction' directly yields the idea of a fee associated with carrying out a transaction. Although the full entry mentions a specific domain (digital networks/blockchains) and variable fees, the basic meaning is transparently derivable by a B1 learner who knows the constituent words and cross-linguistically common compounding patterns.
Etymology
Transaction cost comes from the idea of small extra payments or efforts that happen when people make a deal. Imagine going to a market: besides the price of an item you may spend time, travel, or pay someone to help — those small extras are the 'transaction cost', so the phrase means 'extra costs when making a deal'.