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To summarise Coase’s article, these transaction costs are:
1. Search and information costs
Most of us have experience of using services like eBay, Google and Kelkoo to check out prices for a range of goods and services within a few minutes. This simply was not possible before the Internet, and seeking out suppliers, product details and prices would have entailed telephone calls, writing for catalogues or perhaps looking at lists and advertisements in trade magazines.
Search and information are two of the key abilities and enablers of eBusiness. Major websites such as Google, Amazon, Ebay and BBC depend heavily upon a search engine that represents a main differentiator from ‘old economy’ businesses that sold advertising, books and videos, auctions or news...
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