The various types of transactions are crucial to a Commons-Schmid type approach to institutional economics. Here we will briefly explore the various types of transactions proposed by Schmid and Commons. Schmid 1. Bargaining Transactions - a mutual consent of transfer of property rights between legal equals; this could include individuals or groups of individuals; there are crucial issues regarding who has what power or authority relative to the other parties 2. Administrative Transactions - a superior and inferior relationship; position of superiority can be a public administrator, legislator, police officers or a private owner; can be confusing because it can change rights but also be subject to rights as well; may be between two parties but for the benefit of third party; source of authority can be be a private contract or public law 3. Status and Grant Transactions - there is no bid or command, a one way movement of rights based on habit or benevolence of the giver...
This blog has been setup to explore the ideas and philosophy of the American institutional economist John R. Commons.