Determinants of Transactions Costs
in the Brazilian Stock Market
This representation seems to imply that the Coasian case of zero transactions costs
is also the real world.
To establish the reach of this new way of thinking, Abramson invokes Ronald Coase's work, which establishes the central role of transactions costs
in the organization of economic institutions.
A relation between zero returns and transactions costs
is then established.
Uppal, 1993, "Optimal Replication of Options with Transactions Costs
and Trading Restrictions", Journal of Financial and Quantitative Analysis, 28:117-138
Estimations of transactions costs
should include the cost associated with the bid-ask spread.
With a few exceptions, most research has focussed exclusively on factors affecting transactions costs
True, transactions costs
from negotiation between two separate entities could be reduced to zero by unifying ownership.