Why Transaction Cost Economics Failed and How to Fix It

Li Mingqian

Papers from arXiv.org

Abstract: The connotation of transaction costs has never been definitively determined, and the independence of the concept has never been rigorously demonstrated. This paper delves into the thought systems of several prominent economists in the development of transaction cost economics, starting from first-hand materials. By combining multiple works of the authors, it reconstructs the true meanings and identifies endogeneity issues and logical inconsistencies. The conclusion of this paper is bold. Previous research has been largely filled with misinterpretations and misunderstandings, as people have focused solely on the wording of transaction cost definitions, neglecting the nature of transaction costs. The intention of transaction cost theory has been unwittingly assimilated into the objects it intends to criticize. After delineating the framework of "transaction costs-property rights-competition", this paper reconstructs the concept of transaction costs and the history of transaction cost concepts, providing a direct response to this theoretical puzzle that has plagued the academic community for nearly a century.

Date: 2024-05, Revised 2025-01
New Economics Papers: this item is included in nep-his, nep-hme and nep-hpe
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2405.09087 Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2405.09087

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().