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In economics and related disciplines, a transaction cost is a cost incurred in making an economic exchange (restated: the cost of participating in a market).Transaction costs can be divided into three broad categories: Search and information costs are costs such as those incurred in determining that the required good is available on the market, which has the lowest price, etc.Bargaining costs are the costs required to come to an acceptable agreement with the other party to the transaction, drawing up an appropriate contract and so on.
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