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The costs of making economic exchanges beyond the price of goods—search, bargaining, enforcement. IRSA's research on Market Exchange Constitution shows that high transaction costs often signal missing constitutional preconditions for markets to function regeneratively. Rather than reducing costs, the solution may require building foundational infrastructure.
Impact investing has high due diligence costs. Traditional view: efficiency problem. IRSA view: the market lacks constitutional preconditions (standardised metrics, verification infrastructure) that would make transaction costs unnecessary.
See: Market Exchange Constitution, Constitutional Precondition