  The methods of new institutional economics for identifying the transaction
costs of trade litigations in Bulgaria are used in the current paper. For the
needs of the research, an indicative model, measuring this type of costs on
microeconomic level, is applied in the study. The main purpose of the model is
to forecast the rational behavior of trade litigation parties in accordance
with the transaction costs in the process of enforcing the execution of the
signed commercial contract. The application of the model is related to the more
accurate measurement of the transaction costs on microeconomic level, which
fact could lead to better prediction and management of these costs in order
market efficiency and economic growth to be achieved. In addition, it is made
an attempt to be analysed the efficiency of the institutional change of the
commercial justice system and the impact of the reform of the judicial system
over the economic turnover. The augmentation or lack of reduction of the
transaction costs in trade litigations would mean inefficiency of the reform of
the judicial system. JEL Codes: O43, P48, D23, K12
