Adapting online contracts in the era of digital transformation from an institutional perspective

Abstract

Motivation: The development of information and communication technologies in the digital age significantly transforms contracting practices, necessitating adaptation by market participants. The dynamics of online contracts require a deeper exploration of key concepts from the new institutional economics, including transaction costs, property rights, and contracts. Understanding user preferences and experiences is crucial for comprehending the adaptive processes of online contracting, which are increasingly relevant as technology reshapes market interactions.
Aim: This article aims to enrich the discussion of institutional economics in the context of online contracting, focusing specifically on the effects of transaction costs, property rights, and contractual adjustments. It seeks to identify user preferences, analyse contract adaptation processes, and offer practical guidance to market participants as they navigate the complexities of online contracts.
Materials and methods: The study employs institutional analysis tools to examine the transformation of contracts in the digital environment. A diagnostic survey using a questionnaire technique is used to gather data on user patterns and preferences in online contracting. The institutional economics framework is applied to interpret the findings, particularly concepts like transaction costs and property rights.
Results: The analysis reveals how transaction costs and contract flexibility influence the adaptation of contracts in online environments. Key factors driving the choice of specific contract forms are identified, and the research highlights the importance of balancing efficiency, security, and adaptability in online contracts. This study provides insights into the evolution of contracting mechanisms, offering a better understanding of how contracts are modified and adapted to meet changing market conditions.