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Comments on Western Contemporary Definition of Transaction Costs
1997, (7):
49-54.
DOI:
The new economics offers a variety of transaction costs which can be classified for the sake of comprehensive analysis and criticism.First of all,the definition limited to the function of market price:This definition only vaguely explains that transaction costs belong to the category of cost,but fails to elaborate on its components or function, which leads to a confusion of the connotative differences in transaction costs and information costs,and thus incurring criticism ag ainst the Principle of Coase from all sides.Secondly,the definition meant to be applied to organizations of all kinds of market economy:This definition stresses comparative studies of different systems.While it has solved various problems brought about by Coase in his earlier definition of transaction costs,it displays such defects as lacking operational feasibility,and therefore can not be used to analyze the dynamic innovation achievement of an enter prise.Finally,the definition meant to cover all human systems:This one is superior to all the earlier ones.But still it has its own shortcomings,for it has left many problems unsolved.A case in point is contradiction in logic when dealing with system efficiency.Besides,its behaviorist theory gives rise to ig norance of many political categories in the framework of costbenefit analysis.What is more,it can easily fall into the dilemma of historical functionalism since it is unable to precisely describe mechanics in the course of systemic changes.
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