Why Transaction Cost Economics Failed and How to Fix It

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. Previou...