Expanding Horizon of Transaction Cost in an Internet Based Business Platforms

Abstract

The article focuses on the way the Internet has created a foundation for a large variety of new businesses that live on providing services lowering the transaction costs. Transaction theory its role and implication in changing industrial structure with a sprung up of the internet-based platform and understood how another theoretical framework could help in understanding changing economic environment. Airbnb (accommodation) and Uber (transportation) being among the prominent ones based on collaborative concepts, also termed as sharing economy are considered as base to explain the concept. The purpose of research is to understand the role of transaction cost and transaction cost theory in changing business environment of sharing.