Organization and Transaction Costs


Currently I am in an RSO called Illinois Synchro Skating. We are a Synchronized skating team that practices at the UIUC ice rink. Even though we are a skating team there still is a sort of Organizational structure to our RSO. We have a president and vice president that oversee the important matters of our RSO and we have a executive board that includes our treasurer and secretary that meet with the president and vice president once a week to go over problems that might come up  that need to be solved. Although I am still pretty new so I am not exactly sure who does what I know that the executive board has to coordinate practice times with the rinks and rent out room at the Armory and Arc for our off ice practices and workouts. They also need to coordinate travel expenses when we go out to competitions and figure out where we will stay and what we will eat during our travels. My guess is they all work together to figure out all the details, like someone will find the hotels and the treasurer will decide on if we can afford them while someone else plans out our days. I am pretty sure that everyone in these positions are new to these positions this year since they were voted in last semester. They probably learned what they needed to do from the people who last held the positions which was the reason for them getting voted in last semester but only actually starting to do their positions this semester. So they had time to shadow the past executive board to learn how to be leaders in our RSO.

I was reading some comments that the professor put on other blog posts about "Transaction Costs" and he was talking about how many people were making the mistake of actually talking about Production Costs instead. There are Transaction Costs when the executive board has to spend their time to figure out all the logistics that goes into our competitions. They have to find the hotels and compare them to other ones to find the best prices and they also have to book transportation for us.
I am not sure if this would be included in transaction costs but if we don't go to a practice session we have to pay a fee for missing it and we also have to practice on our own on the ice for 1 hour a week and if we miss that we also have to pay a extra 15$ for missing it. This is defiantly a cost but is it  Transaction Cost?

Comments

  1. Professor ArvanSeptember 17, 2019 at 4:10 AM

    I'm acknowledging receipt of this post. If you can get them in earlier in the future, I will comment on them.

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