kostenkäters

Kostenkäters is a neologism used in some German-language economic and organizational theory writings to describe actors, practices, or conditions that elevate the cost of producing, delivering, or maintaining a product or service. The term is not part of core economics and does not refer to a specific industry; rather, it signals recurring friction points that raise total costs.

Etymology: The compound combines Kosten (cost) with a derived suffix in theoretical jargon. Its usage remains informal and is largely confined to speculative or discursive contexts.

Definition and scope: A Kostenkäter is any element that adds to the cost base without adding commensurate value (or without improving outcomes). They can be external (regulatory requirements, market frictions) or internal (bureaucratic processes, misaligned incentives).

Mechanisms: Examples include information asymmetry between buyer and seller, principal-agent problems, contractual complexity, and administrative overhead. They arise from imperfect information, bounded rationality, and incentive misalignment. In project finance and public procurement, Kostenkäters often show up as compliance costs, change-order costs, and delays.

Measurement and mitigation: Analysts may quantify costs through transaction-cost frameworks or activity-based costing. Policy design to reduce Kostenkäters focuses on simplification, transparency, standardization, digitalization, and improved governance to align incentives.

Reception and criticism: Critics argue the term is vague and lacks empirical grounding. Proponents find it useful for naming recurring cost drivers beyond direct prices.

See also: transaction costs, principal-agent problem, bureaucratic overhead, regulatory burden, cost of compliance.