This allowed for creating a graphic model of the partnering relations of construction enterprises with four main transactors
on the institutional (business-to-business) market (Fig.
The reason the financial transactors
play the role they do in this version of the model is to have a convenient device for allowing money to diffuse through the economy.
I assert that transactors
often use several methods to enforce individual agreements.
This reduces the potential for opportunistic behavior by transactors
after an agreement is reached because terms of the contract are not renegotiable (Dahlstrom and Nygaard, 1999).
They are the constant revolver, who never pays the card off each month; the occasional revolver, who sometimes clears the balance; and the transactor
, who always pays the whole bill.
On the one hand, Scruton observes that Hayek's arguments support institutions in which the transactors
are voluntary cooperators, not pawns of a monolithic bureaucracy.
Card users fall into three categories: transactors
, revolvers and occasional revolvers, according to a study carried out for GM Card.
Finally, even if the promisee does not intend to transact with the breaching promisor again, the information revealed during the course of the dispute may be used by other transactors
with whom the promisee has ongoing relationships, to engage in holdup, to justify demands for adequate assurances of performance, or to extract additional increments of the bargaining surplus in future negotiations.
Increased transparency for businesses, financial institutions, and governments is a key ingredient in fostering more discipline on private transactors
and on government policymakers.
In real estate transaction activity, society uses the institution of appraisal to influence transactors
toward transaction prices that promote transaction, market function, and asset liquidity.
The only reason for having to keep transactors
equal, and to do nothing else, is because their rational agency requires equality and resists reduction to other terms.
Following a brief introduction covering the concepts of economic decisions, the behavior of economic transactors
and the difficulties inherent in economic forecasting, the Canadian economy in aggregate is reviewed from the standpoint of the System of National Accounts.