Jordan stops by Trader Joe’s every Sunday to pick up groceries for himself and his two housemates. He buys the same set of items each week: almond-flour tortillas for his gluten-sensitive diet, oat milk for his housemates, and a variety of plant-based frozen meals that Trader Joe’s consistently stocks. Jordan prefers Trader Joe’s over Stop & Shop because it reliably carries these products. Jordan’s transactions with Trader Joe’s are standardized because: 单项选择题
A
they are high frequency and low asset specificity
B
they are high frequency and high asset specificity
C
they are low frequency and high asset specificity
D
they are low frequency and low asset specificity

Question

Jordan stops by Trader Joe’s every Sunday to pick up groceries for himself and his two housemates. He buys the same set of items each week: almond-flour tortillas for his gluten-sensitive diet, oat milk for his housemates, and a variety of plant-based frozen meals that Trader Joe’s consistently stocks. Jordan prefers Trader Joe’s over Stop & Shop because it reliably carries these products. Jordan’s transactions with Trader Joe’s are standardized because: 单项选择题

A

they are high frequency and low asset specificity

B

they are high frequency and high asset specificity

C

they are low frequency and high asset specificity

D

they are low frequency and low asset specificity

BlackTom AI · Accepted Answer

High frequency, low asset specificity characterizes Jordan’s relationship with Trader Joe’s.

1. Relevant knowledge points and concepts
- Transaction cost economics uses dimensions such as frequency (how often transactions recur) and asset specificity (how specialized or non-transferable investments are to a particular partner) to classify transactions as standardized or relationship-specific.
- Standardized transactions are routine, repeatable, and do not require supplier-specific investments; they are well governed by simple market mechanisms.

2. Step-by-step reasoning
- Frequency: Jordan shops every Sunday — this is a recurring, regular, high-frequency pattern.
- Asset specificity: The products Jordan buys (almond-flour tortillas, oat milk, common frozen meals) are generic consumer goods available from multiple retailers and do not require Trader Joe’s-specific investment by Jordan (no customized equipment, unique packaging, or supplier-specific training). Thus asset specificity is low.
- Combining these two: high frequency + low asset specificity = standardized transactions governed by market contracts, routine ordering, and minimal switching costs.

3. Calculations / intermediate steps
- No numerical calculation is required. The logical steps are:
  a) Count of occurrences per week = 1 (recurring weekly) → treated as high frequency.
  b) Degree of supplier-specific investment = minimal → low asset specificity.

4. Why the correct answer is correct
- Because Jordan’s purchases happen regularly and the goods are generic and widely available, the interaction is routine and standardized. There is no dependency on bespoke assets or long-term specific investments that would characterize high asset specificity.

5. Why other options are incorrect
- High frequency & high asset specificity: incorrect because the goods are not specialized and do not lock Jordan to Trader Joe’s.
- Low frequency & high asset specificity: incorrect since purchases are weekly (not infrequent) and goods are not specific.
- Low frequency & low asset specificity: incorrect because frequency is high (weekly), not low.

6. Conclusion
This reasoning confirms the correct choice: they are high frequency and low asset specificity.

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