Sangak from supermarket or bakery?
What had always been a challenge for me to explain to others why I prefer doing my shopping in a hypermarket rather than going one by one to each bakery, butchery, and all other stores was the term I discovered recreantly by the name of “Transaction costs”. The time spent for searching, the energy consumed (either fossil or mechanical) to do the exchange, and finally in the case that the exchange didn’t take place well, the effort that should be taken to gain your rights back are all considered as transaction costs. In reality, not only we take into account the economic theoretical points, but also there are these costs that should be considered and naturally are considered by each individual in the economic activities. From a nation to another, these costs vary according to their institutions, those which are determined by a nation’s legal system, its political system, its social system, its educational system, its culture and so on (R.Coase, 1998).
Now I can explain why buying a package of Sangak bread from a supermarket near my house was a wiser and more economic attitude rather than buying them from the bakery which had a long queue.