Oh, on the contrary: I think this article misses several things that are quite important (or were brushed under a single sentence like “[main principal/agent problems] are communication and risk.” Reason: emphasis on things fewer readers were likely to consider.
So the costs you’re describing are indeed real and brushed off to corner. I think both of these fall under transaction costs, and #2 also under centralization and overhead. For #2, I think you mean something other than what “externality” means to me (a cost specifically born by a non-party to a transaction) --- maybe second-order cost?
Oh, on the contrary: I think this article misses several things that are quite important (or were brushed under a single sentence like “[main principal/agent problems] are communication and risk.” Reason: emphasis on things fewer readers were likely to consider.
So the costs you’re describing are indeed real and brushed off to corner. I think both of these fall under transaction costs, and #2 also under centralization and overhead. For #2, I think you mean something other than what “externality” means to me (a cost specifically born by a non-party to a transaction) --- maybe second-order cost?