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But analysts say that even with the window-dressing alliances, Mr. Coase's theory still holds: with diminished transaction costs, more alliances are inevitable.
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We can expect similar disruptive impacts as the diminishing transaction costs of green energy allow manufacturers, retailers, and service industries to produce and share goods and services in vast social networks with very little outlay of financial capital.
However, Cook acknowledged in an update on Monday that "our confidence that we can consummate this transaction has diminished".
In particular, if they need to sell an amount of the illiquid asset themselves, the proceeds from this transaction are diminished.
The reason, he said, is that the new renminbi-linked investments carried currency-exchange costs and transaction costs, which diminished overall returns.
Electronic trading has brought us lower transaction costs but has diminished the calming influence of NYSE floor specialists.
Though commissions and spreads have diminished in recent years, Professor Wermers estimated that transaction costs of all kinds reduced performance by 0.5 percentage points or so a year -- or $20 billion today.
There's one notable reason for this: the highly personal logic of the gift exchange, a transaction by which a personal relationship is strengthened, not diminished.
Two decades and millions of dance floor transactions later, Britain's nightclub drug trade is altered – diminished, in fact – but still very much alive.
Ball diminished.
Diminished capacity?
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com