The Comparison And Synthesis Between New Institutional Economics And New Economic Sociology: Transaction Organizational Institutional Analysis

This paper is a theoretical study of basic analytical paradigm of economic and social problem, which mainly focuses on the comparative study of transaction, transaction organization and transaction institution of new institutional economics and new economic sociology. In the social sciences, especially in economics and sociology, there are a lot of researches on transaction, transaction organization and institution. In the 1970s and 1980s last century, new institutional economics and new economic sociology have boomed the studies of organization and institution to new height. However, new institutional economics and new economic sociology have similarities and differences in basic research methodology, the main theories, such as components and logic methods on both similarities and differences.To deal with the organization and institution, most studies focused on firm and market, and only few studies involved family or clan. Sociologic researches mainly study family from the perspective of social interaction and network and focus on the family as a social organization and its function of social cells. However, the family or clan in different historical stages and different countries has economic organizational function. And in different legal system and different cultural tradition and social norms, the role of family is not the same.This paper tries to build comprehensive theoretical framework—transaction organizational institutional analysis, by comparing and summarizing the basic methodology and theoretical system of the new institutional economics and the new economic sociology. In the study of transaction organizational institution-the family, the firm and the market-will be put into a unified and integrated analytical framework.The synthesis of this paper is to build a theoretical framework which is not able to promulgate the economy and the social relations, but also have the enough explanation to experience, as far as the study object is concerned. In order to carry on such attempt, we first need to seek a reflection economic society to relate, the packet of energy including the macrostructure factor and the microscopic motion factor's analysis concept, which can enable these two kinds of factor analysis to be able to unify in one comprehensive basic methodology foundation.The paper's research logic is: Abstracting the basic concept from the experience fact; then obtaining the elementary theory component; and then, through in new system economic and new economic sociology foundation conformability methodology innovation, establishing an analytical pathway; Finally, constructing a comprehensive economic society analysis method, namely transaction organizational institutional analysis.This paper compares and synthesizes research methodologies of the new institutional economics and the new economic sociology. In a wider range of social structure, this paper discusses the decision and transaction change and cultural beliefs and social way to transaction relationship and common evolution. In particular, in consideration of the individual choice on the basis of analysis of the transaction institution, we establish cultural beliefs of informal social transaction institution as the general framework structure, to understand and examine family, firm, market and the function of transaction and factors which decide the boundaries. In particular, the historical analysis, concern "self" and "the implementation of implementing" and "third party" contract implementation of each operation mechanism and mutual influence. Transaction institution is not simply taken as exogenous variables, which focuses on the formation and evolution of transaction institution and decision factors. Finally, the view of study will expand from market-oriented transaction institution to non-market oriented institution structure, from the institutional arrangements to institutional environment, from the economic, political, legal system, to the value of traditional cultural and ideological, especially to expand the influence factors of traditional culture system, values and ideology.The analytical structure is as follows: the first chapter is introduction; the second chapter is for the theory of new institutional economics. Through the survey of literatures, this chapter analyses the researches and developments of the new institutional economics and transactions of organization and institution. The third chapter is the review of new economic sociology theory. The fourth chapter is the comparison and synthesis of new institutional economics and the new economic sociology. The fifth chapter is a comprehensive analysis framework. In this chapter, I define the basic hypothesis, and research methodology and the analysis of the specific levels, and expounds theoretic foundations of the new institutional economics and the new economic sociology and states scientific philosophy meaning of discipline integration; The sixth chapter defines transaction institution of organization and the main properties of family, firm and market, building a risk sharing theory model. Chapter seven focuses on the embeddedness of economic behavior and the social construction of economic institution, and studies the old-age financial supportive system in China as an example. Chapter eight is the research prospect which discusses further development direction from two aspects of theory and application. Chapter night is the conclusion.The main points in this paper are:(1) Transaction, transaction organizations and transaction institution is the object of study which the social sciences pay attention to together. This article analyzes the concepts of transaction, the transaction organization and institution in the economic and sociological research category with focusing on their similarities and differences. Through the comparison and the synthesis, this research showed the opposition in two domains is not severe; moreover, this paper tries hard to build a unified analytical framework of new institutional economics and new economic sociology.(2) As to the synthesis of new institutional economics and the new sociology, this paper studies two theoretical paradigm integration foundation - the theoretical basis and value of consensus, as well as theoretical complementary to each other. And from the perspective of philosophy of science to understand the Synthesis between new institutional economics and new economic sociology as the two research system, it brought about the integration of "knowledge growth". The paradigm shift is brought about by integration is accordance with Kuhn's art model, and not the scientific model. Therefore, there is no commensuration failure. In the social sciences, we can clearly see that the outcome of disputes is usually accepting the new theory but not completely destroyed and abandoned old paradigm, thus, it makes comprehensive analysis possibly.(3) Organizational and institutional forms such as firm, family and market, in accordance with their economic and social functions in the economics and sociology, as well as existing research, are distinguished from transaction costs (including transacting connection cost), transaction risk sharing (the main objective for the risk and uncertainty), default risk and contractual regulation characteristics.(4) In the comprehensive analysis framework of new institutional economics and new economic sociology, family, firm and market—transaction organization and institutional arrangement can be studied by the institutional analysis of transaction organization which is based on the transaction cost and specific cultural tradition of individual preference. Transaction costs and cultural tradition of the individual preference for transaction determines the choice in the organizational institution, the primary transaction (basic, affordable and Maslow' s hierarchy of needs of low sense of transaction demand) should be made by the transaction cost of leading transaction organization system, and in subprime transaction can make full consideration in cultural tradition and social customs under the influence of individual preference. Based on the transaction cost of primary transaction organization institutional arrangement of the effectiveness of individual preference, individual savings in the secondary transactions have ability to select more individual subjective preferences containing the organizational institution. Under this circumstance, subprime transaction has even more efficiency than primary one.The main innovation of this study: (1) From the combination of micro-level consideration of individual choice and the embedded social network analysis, the study of social structure and economic efficiency of transactions, such as macro-level issues are considered; Building a general analytical framework for research.(2) In the case of transactions relating to specific issues, such as family-based reciprocal transactions, in areas such as economics and sociology are often analyzed separately from the economic factors, social factors, cultural factors, and this article seeks to set up an inter-disciplinary society integrated analytical framework to study the decision and the change of different social transaction structure.(3) Put the family, firm, market—specific transaction organizations into the cultural beliefs, such as non-formal institution and social study on the relationship between transaction institutions, thus it can better reveal and understand the economic situation.(4) Summarize and extract the "theoretical basis and value of consensus" and "theoretical complementarity of each other" as the expected "cost" and "benefit" of theoretical synthesis, and from the perspective of philosophy of science, to understand the significance of the synthesis of new institutional economics and new sociology.The deficiency of this paper lies in: the logic structure of this paper may not be precise due to its basing on a framework which the author summarizes himself, and the arrangement of this paper also needs to be perfected further. Besides, those arguments for the practical applications of the theories need to be strengthened in this paper.The further study involves: deepening the logic framework. Research in this area is bound from the individual utility function or preference structure, the use of social networks, transaction sequence of basic mathematical analysis, and extended to groups and society in general analysis; further summarized Economic Sociology new economic sociology, as well as two streams of academic research traditions from the literature, and thus a deeper understanding of economics and sociological research paradigm of the similarities and differences is possible; For enterprise theory, family economics, the market research, try to build a more precise theoretical system on the basis of institutional analysis of transaction organization to further those theory study such as relationship-specific investments, hold-up problem, the economy of individual accumulation of social capital, the market mechanism for property transactions, business theory, the relevant content, finance and insurance arrangements, meanwhile, add some appropriate case study.