From a transaction-cost analysis perspective, market failure typically happens when transaction-specific assets become _________________ and therefore more high-
Control situations are needed.

Question

Quizplus · Accepted Answer

Transaction-specific assets are assets that are valuable and specific to a particular transaction. When these assets become more valuable, market failure can occur because the costs of negotiating and enforcing contracts between parties become too high. This can lead to the need for more control or regulation to mitigate the risks of market failure.

From a Transaction-Cost Analysis Perspective, Market Failure Typically Happens When