What is a transaction cost in a collective action problem?
What is a transaction cost in a collective action problem? Transaction costs (Transaction Costs) can be defined as the costs of collecting information, and bargaining and monitoring contracts between economic agents (Vatn 2005). What is an example of a collective action problem? Environmental problems such as climate change, biodiversity loss, and waste accumulation can be described as collective action problems. Since these issues are connected to the everyday actions of vast numbers of people, vast numbers of people are also required to mitigate the effects of these environmental problems. What are the advantages of collective action? Collective action has been...