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In this literature review we illustrate the application of Transaction Cost Economics (TCE) to agribusiness based on four empirical studies on assessing transaction costs (TC) in different countries. Main findings are: (a) the lack of empirical studies on TC at farm level; (b) no standard procedure to assess TC; and (c) TC can be much more important than it has been believed by economists. In fact, what is needed is not just one more study revising what main sources related to TC said in a theoretical way. We need more empirical studies, where authors really assess what is going on at the transaction level. That information will provide more valuable information for public and private decision makers

The importance of transaction costs in agriculture – a review of selected empirical studies