Summary of 《 Digital Economy 》
Chapter 4
In “Reduction of Transaction Costs by Using Electronic Commerce in Financial Services: An Institutional and Empirical Approach” in “Digital Economy”, chapter 4, Harbhajan Kehal & Varinder P. Singh, 2005, the authors Thomas Pfahler & Kai M. Grebe, University of Bayreuth, Germany reveal the positive impact of Information and Communication technology on transaction costs reduction in financial services. The authors claim that e-commerce is crucial to financial institutions. Employing “the basic principles of New Institutional Economics” (Thomas Pfahler & Kai M. Grebe, 2005, Page 63), they created a cost model that focuses on the changes of transaction costs under the influence of different technologies—“manual, mail, phone, fax, BTX, online and mobile” (Thomas Pfahler & Kai M. Grebe, 2005, Page 68). In this way, the writers drew the conclusion that electronic commerce is one of the most effective ways to reduce the cost of transactions, which can be proved by “empirical considerations” (Thomas Pfahler & Kai M. Grebe, 2005, Page 72)
Chapter 4
In “Reduction of Transaction Costs by Using Electronic Commerce in Financial Services: An Institutional and Empirical Approach” in “Digital Economy”, chapter 4, Harbhajan Kehal & Varinder P. Singh, 2005, the authors Thomas Pfahler & Kai M. Grebe, University of Bayreuth, Germany reveal the positive impact of Information and Communication technology on transaction costs reduction in financial services. The authors claim that e-commerce is crucial to financial institutions. Employing “the basic principles of New Institutional Economics” (Thomas Pfahler & Kai M. Grebe, 2005, Page 63), they created a cost model that focuses on the changes of transaction costs under the influence of different technologies—“manual, mail, phone, fax, BTX, online and mobile” (Thomas Pfahler & Kai M. Grebe, 2005, Page 68). In this way, the writers drew the conclusion that electronic commerce is one of the most effective ways to reduce the cost of transactions, which can be proved by “empirical considerations” (Thomas Pfahler & Kai M. Grebe, 2005, Page 72)
3 comments:
hi,I'm LULU. I am really interested in you topic. In the class,you express your opinion clearly. Also, you give several example to explain the theory.In addtion,I thinkg you adequately prepared,since you do support your opinion.finally, I think you distinguish between fact and opinion.for example, you said" the anthor stated ....".that's great!thang you for ur presenting.
Good job, MengXue. E-commerce is a quite big topic, but you can express your opinion very well. You showed us the facts and also your own specific perspective. Thanks a lot.
Transaction cost has bothered people for years. It is interesting for me to listen to your clear illustration which were supported by evidence strongly.
I hope you can continue doing that!
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