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Study On The Business Conducts Of Chinese Insurance Company: A Perspective Of Transaction Costs

Posted on:2004-10-27Degree:DoctorType:Dissertation
Country:ChinaCandidate:Z L WangFull Text:PDF
GTID:1116360092491363Subject:Industrial Economics
Abstract/Summary:PDF Full Text Request
The theory of transaction costs is a subject that is now still developing quickly. The given articles of the theory have shown the popular and important meaning of transaction costs to the research of the conduct of the firms. But there still isn't any systemically research applying the theory of transaction costs to the insurance company's marketing behaviors.1The marketing behaviors of insurance company at last would be presented by the individual's behavior. According to the definition of Commons and Von Misses, the transaction conduct is the intending behavior among the persons. And the transactions costs include all of the costs taken place in the no-material-producing in which minimizing the costs is the standard of behavior. The transaction costs could be seen as the outcome of transaction, and also could be seen as one of deciding factors of the transactions. The transactions of insurance company and other market bodies are the starting point of our analysis. Williamson take the transactions as three dimensions, the uncertainty of transaction, the asset specificity, the frequency of transaction. Those basic factors are combined of the transaction traits. Different trait requires different contract relationship to meet it, and different coordinating mechanism to organize it.The institutions can be considered as the rules of the behavior, the binding conditions of the people's transactions. In the new institutional economics, the function of institutions is how to set up the people's conduct rule for the purpose to guide the transactions doing well, to encourage and bind the people's conducts, to reduce the uncertainty and transaction costs in the society which is lack of resources and full of competitions. As the transaction relationship, the institution is the outcome of people's selections and defines the domain of selections. If we take the transactions as the games among the people, then the institutions also can be seen as the self-supporting-system of the common comprehension about how the games perform. The marketing behaviors of insurance company are a series of transactions while the insurance company does the insurance contracts with the transaction partners, which can be roughly divided as the demanders, competitors, cooperators and regulators. The transaction costs influence the utility function of insurance company and other game body and the outcome of game as well.The property rights structure stimulates the people's economical conducts throughtransiting the property rights as the valuable asserts and arranging who can bear the deciding costs and benefits of using resources. Distributing the deciding power, property rights arrangement decides who conducts in the economic system and how is the social wealth distributed. So, defining and enforcing the property rights institution influences the idea of using economic resources the economic conducts and economic performances. Any change of property institution would concretely and predictable influence the distribution of resources and income and the structure of products. To analysis the transaction deeply, we should consider the structure of property rights and transaction costs at the same time. For this reason, the contracts are very important, since the transition of property rights rely on the contracts. It's impossible for the persons concerned about the contract make everything of future certain because of the limiting reasonability and high transaction costs. They rely on the relationship that is not only about the single purchase relationship and they would rather bear some obvious static inefficiency. This is important for us to comprehend the business conducts of insurance company.2To the risk-aversion people who want live stably, purchasing the insurance police is a good measure to averse the risk, and this also makes them all get the transaction benefits. But, since the existence of transactions costs, the insurance companies cannot satisfy all the demands of risk-aversion that meet the underwriter conditio...
Keywords/Search Tags:Chinese insurance company, business conducts, transaction costs, binding conditions
PDF Full Text Request
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