But these procedures are costly and then the regime is not necessary cost dominant. Exchange is voluntary. Relevant conditions are common in modern society. This pushes for merging the business of the buyer and the seller. Exchange is voluntary.
Relevant conditions are common in modern society.
The cost of firm exchange increase with number of diverse activities within the firm, and weakness of competitive check. This push for splitting up the firm in smaller less diversified firms. Exchange may be mandatory. E.g. tax payments and national service. This latter increase transaction cost.