Legal Understanding of Transaction Costs

Abstract

Purposes: This paper is devoted to the legal understanding of transaction costs both as a concept and a method developed within the framework of the institutional economics discipline for analyzing the consequences of various kinds arising from the exchange of goods. This work is relevant due to the need to apply new interdisciplinary methodological approaches to solving the problems that classical jurisprudence faces. The authors gave legalized concepts of transaction and transaction costs.Methods: As the main task within the framework of this paper, the authors proposed a classification of transaction costs, with the help of which it is possible to analyze legal activity in various fields. The study was based on the works of foreign and Russian scientists, economists and lawyers. Results:In the paper, the authors found that the classification of transaction costs used in economics was created only for analyzing relationships within substantive law and using them to analyze other legal relationships seems to be quite problematic. As a result of the study, the authors developed a new classification of transaction costs, which can be used both for the analysis of substantive and procedural law. Also, they focus on certain aspects of various transaction costs. Implications/Applications: In this regard, a problem arises in creating a classification that would take into account the advantages of all these approaches, and would also be suitable for describing both substantive and procedural legal relations.Novelty/Originality: The development of domestic and foreign legal science is impossible without the use of interdisciplinary approaches, including not only the interaction of intersectoral relations, and this article has studied this issue.It is also worth noting that transaction costs can be divided into 1) natural -that is, arising without the participation of a state (government), and 2) closely associated with government regulation. For example, in the case of entering into an employment contract with a foreign citizen or a stateless person, the natural transaction costs at the contract conclusion stage will be only the costs of signing the contract by two parties. State-based transaction costs will be transaction costs for obtaining work permits for a foreign citizen, notifying the migration authorities of the employment contract, etc. We should also pay attention to the fact that the process of protection of violated rights (for example, the resolution of a dispute in court) can also be considered a transaction, which will consist of these steps. SUMMARYThus, the transaction costs method, being created for a legal analysis of the distribution of values at the level of property law, requires significant adjustment. The reason is in connection with its use in monitoring various manifestations of legal reality arising in various branches of law. The first step in the implementation of this task is the selection of a suitable classification of transaction costs, which in the future can be used to analyze costs ma...

Methodological problems of human social security: legal and economic discourse

“…In the work [10] we conducted a brief analysis of the works of Russian jurists and economists (A.A. Auzan, E.M. Ashmarina, V.V. Ershov, V. Kornev, M.Y.…”