The basic proposition of transaction cost analysis is that , although the various components of transaction costs can be distinguished , what is generally relevant to a contractual choice is only their total (and therefore cost minimization in general) . Therefore, for convenience , rather than dealing separately with the costs of information , negotiation , bonding, and so on , the analysis can be in terms of aggregate transaction costs. In section5 , we cite some empirical evidence supporting the proposition that transaction cost considerations can be important in explaining the choice of contratual forms