Transaction Costs Assumptions

Among the development experts, the explanations given by the institutionalists regarding the reason of the development and non-development of societies, due to their use of the Institution and conducting interdisciplinary studies, have superior characteristics. In this approach, in order to achieve development, societies are forced to change the existing institutional structure to a structure that encourages reducing transaction costs at the level of their political, economic, and social interactions. In this process, the fundamental step is to know the transaction costs and the factors affecting them. Therefore, in this article, while introducing new institutional economics as the main origin of transaction cost economics, it is shown that in this theory, we are faced with two approaches, one of which focuses on the firm and its interface, and the other emphasizes on macro structures. In the following, while criticizing the opinions of the pioneers of the transaction costs theory, about two behavioral assumptions of rationality and opportunism as the main effective factors in creating TCs, it is shown that uncertainty is the main assumption that constitutes the explanation of this theory.