analytical Q May-Aug 2000Sept-Dec 2000ContactDiscussion

The Diary
of
Anne Ku

30 September 2000 Saturday

rain, clouds, sun

HASSLE FACTOR

The Internet is supposed to reduce transaction costs to zero. In other words, it "disintermediates" - gets rid of the intermediator, the middle man - as well as the cost of transaction - such as phone calls, paper work, and other "hassles."

Ever since I came across the words "transaction cost" in economics, I would use it to refer to the efficiency or inefficiency of getting a job done. My father used the Chinese words "ma fan" - meaning "hassle." He hates "ma fan." Anything that has high transaction costs is "ma fan."

A recent newspaper article said that most utilities in the UK have moved to the Web. Switching energy suppliers is now very easy - just a matter of reading your meter and filling out the on-line form. Has the hassle factor disappeared then?

Telecommunications deregulated long before energy. Yet when I called British Telecoms to ask to switch back to them, the sales woman took almost one hour to get my details. When can I switch, I finally asked? She told me to expect a letter in six to ten days, which would inform me of a date on which their engineer would visit my home. It has now been more than a week, and I still haven't received that letter.

Perhaps I should have gone on-line and switched instead.

YESTERDAY

TOMORROW