Quasi-pension
The quasi-pension is a term from the transaction cost theory . A quasi-pension is understood as the difference between the return on an investment in its best use and the return on its next best use.
This is the loss that arises when the investment cannot be used as intended. The quasirente occurs when specific investments have to be made for an exchange ( transaction ). These are investments that have only a lower value outside of the exchange. This can be done by an opportunistic contractual partner z. B. be skimmed off by setting the price just high enough that the contracting party just sticks to the contract (see hold-up problem ). The higher the quasi-pension, the more specific an investment is or the higher the degree of specificity of a transaction.
example 1
The following is an example of transaction costs in relationships between market participants:
There are various costs involved in initiating a contract for a specific service:
- Information on potential suppliers must be obtained on the procurement market for the service (initial costs).
- Contract negotiations take time, contracts have to be formulated and an agreement is required (agreement costs).
- The agreed service is to be controlled (processing costs)
- and monitor (control costs).
- Subsequent changes may be necessary ( adjustment costs ).
If the relationship between the contractual partners is terminated (for a reason that is not specified here), although there is still a need for the service, transaction costs will again arise if the service is to be obtained from another provider.
The investment in the supply relationship was therefore specific; it cannot (completely) be used to establish a new supply relationship.
Example 2
The special machine manufacturer X develops and builds a system for customer Y, which was specially adapted to his needs and wishes. However, customer Y becomes insolvent and can no longer buy the finished system from X. Manufacturer X can, however, sell the system to Y's competitor for half the price. Since it is not quite so suitable for him, he is also not willing to pay the full price. This means that manufacturer X has a quasi-pension.
Alternative definition
Another definition of the quasi- pension is derived from the economic definition of a pension . While the annuity marks an actual improvement in the achievement of goals beyond the best alternative, the quasir annuity is a false annuity because its improvement is only fictitious.
Example: The retirement of an auditor in the second term of office in a company is used to be able to offer the auditor's services in the first period below the costs that may arise during the audit ( low balling ).
swell
- B. Klein, RG Crawford, AA Alchian: Vertical Integration, Appropriable Rents, and the Competitive Contracting Process. In: Journal of Law and Economics. Volume 21, No. 2, 1978, pp. 297-326.