Economic Analysis On Business Reputation Crisis In China

In our country's current economic activities, reputation crisis is an important problem, which must be solved urgently. The disability of reputation crisis will lead to some vicious economic effects such as the market shrinkage, the rise of transaction cost, the fall of international reputation, etc. Meanwhile, reputation crisis is also a focus in the research of the current economics field. Its key words are games and information. The current paper manages to discuss reputation from the view of economics, and its focus is on the design of institutions.According to the statement of the relative theory of games and information economics, adopting standardization r esearch m ethods, the paper prove that reputation crisis derives from the unsymmetrical information in the market economics, and the crux to solve reputation crisis is to establish the rule of "repeated games" in the market transaction. For establish this rule of "repeated games", when combining the current practical situation, we must implement reform in two ways: establish and improvement the spreading system of reputation information, and the reform of property rights institutions. The reform suggestions of former include: regulating government function accurately, perfecting relative laws as soon as possible, strengthening supervises in law and education in reputation, and retreating from establishment and operation of reputation agency organizations. And some improvement should be work out in credit-evaluation calling, purging work rank, organizing credit-evaluation guild, establishing enterprise reputation information database and connecting them. The reform suggestions of latter include: continue implementing the reform of "hold the bigger andset free the smaller" in state-owned enterprise, and the crux of this reform is "set free the smaller", changing the state-owned capital to creditor's rights, the non-state-owned capital to shareholder's rights. In the other word, changing the status each other in the investors. Meanwhile, we should emphasize the protection to private enterprise, the particular advice include perfecting relative laws and limiting government behavior.The paper be hoped can become a certain reference to our country's reform of economic system and the formulation of the national macro-economic policy.