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The impact of transaction costs in incomplete contracts on prices submitted in the tendering process
Dissertation (MBA)--University of Pretoria, 2013.
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| Format: | Thesis |
| Language: | English |
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University of Pretoria
2014
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| _version_ | 1867613581552386048 |
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| access_status_str | Open Access |
| author2 | Holland, Mike |
| author_browse | Holland, Mike |
| author_facet | Holland, Mike |
| collection | Thesis |
| dc_rights_str_mv | © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Dissertation (MBA)--University of Pretoria, 2013. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/40071 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:38:25.653Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2014 |
| publishDateRange | 2014 |
| publishDateSort | 2014 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/40071 The impact of transaction costs in incomplete contracts on prices submitted in the tendering process Holland, Mike ichelp@gibs.co.za Fourie, Johannes Antonie UCTD Economics Dissertation (MBA)--University of Pretoria, 2013. All contracts are inherently incomplete because although principals and agents agree ex ante to abide by the terms of the contract, their respective investments differ. In anticipation of performance, both recognise incentives for opportunistic behaviour. Investigating the perceptions of both parties in the tender process contributes towards determining what factors can be used by principals and agents to reduce the extent and impact of incomplete contracts, and to minimise their respective transaction costs. The aim of this research is therefore two-fold: firstly, to establish the impact of incomplete contracts and transaction costs on the tendering process, and secondly, to determine what factors can reduce the impact and minimise transaction costs incurred by both parties. The value that both the principal and agent obtain from the tendered work increases in proportion to the quantity or volume of work, and decreases as the agent’s profit and the cost to both parties increase. Therefore, the value that can be obtained subsequent to any contractual transaction reduces as the costs to both parties increase, which includes their production costs and transaction costs. It is clear that the total net benefit in the transaction is increased if the transaction costs of one or both parties can be reduced. The main transaction costs incurred by both parties due to the cost implication of risk and uncertainty, can be summarised as moral hazard and asymmetric information, time delays, search for and disclosure of information, as well as the enforcement and legal costs that both parties may be subjected to. mngibs2014 Gordon Institute of Business Science (GIBS) MBA Unrestricted 2014-06-08T17:22:27Z 2014-06-08T17:22:27Z 2014-04-30 2014-06-08 Mini Dissertation Fourie, JA 2014-06-08, The impact of transaction costs in incomplete contracts on prices submitted in the tendering process, MBA Mini Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/40071> http://hdl.handle.net/2263/40071 en © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD Economics The impact of transaction costs in incomplete contracts on prices submitted in the tendering process |
| title | The impact of transaction costs in incomplete contracts on prices submitted in the tendering process |
| title_full | The impact of transaction costs in incomplete contracts on prices submitted in the tendering process |
| title_fullStr | The impact of transaction costs in incomplete contracts on prices submitted in the tendering process |
| title_full_unstemmed | The impact of transaction costs in incomplete contracts on prices submitted in the tendering process |
| title_short | The impact of transaction costs in incomplete contracts on prices submitted in the tendering process |
| title_sort | impact of transaction costs in incomplete contracts on prices submitted in the tendering process |
| topic | UCTD Economics |
| url | http://hdl.handle.net/2263/40071 |