Transaction Costs and the Collection of Information: Presale Measurement on Private Timber Sales

Posted: 21 Feb 2000

See all articles by Keith B. Leffler

Keith B. Leffler

University of Washington - Department of Economics

Randal R. Rucker

Montana State University - Bozeman - Department of Agricultural Economics and Economics

Ian A. Munn

Mississippi State University - Department of Forestry; PERC - Property and Environment Research Center

Abstract

Measurement efforts to reduce the uncertainty concerning the attributes of heterogeneous goods may simply redistribute wealth and result in social waste. Individuals bearing the cost of such distributional measurement have incentives to develop buying and selling practices that limit such measurement. We examine, both theoretically and empirically, the determinants of the level of distributional measurement efforts in a competitive auction framework. The empirical application, which uses a sample of private timber sales, provides strong support for the implications of the theoretical model of presale measurement.

JEL Classification: L23, D83, D44, Q23

Suggested Citation

Leffler, Keith B. and Rucker, Randal R. and Munn, Ian A., Transaction Costs and the Collection of Information: Presale Measurement on Private Timber Sales. Available at SSRN: https://ssrn.com/abstract=202349

Keith B. Leffler

University of Washington - Department of Economics

Box 353330
Seattle, WA 98195-3330
United States
(206) 543-5795 (Phone)
(206) 685-7477 (Fax)

Randal R. Rucker (Contact Author)

Montana State University - Bozeman - Department of Agricultural Economics and Economics ( email )

Bozeman, MT 59717-2920
United States
406-994-5644 (Phone)
406-994-4838 (Fax)

Ian A. Munn

Mississippi State University - Department of Forestry ( email )

Thompson Hall
P.O. Box 9681
Mississippi State, MS 39762-9681
United States
(601) 325-4546 (Phone)
(601) 325-8726 (Fax)

PERC - Property and Environment Research Center

2048 Analysis Drive
Suite A
Bozeman, MT 59718
United States

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