Research On The Transaction Cost Of School

With the establishment of market-oriented economy system as well as the reform and improvement of education administration system, school running cost is gradually attracting more attention from all walks of life. As the market mechanism influences so greatly the school operation that the surroundings of school operation grows complicated continually, the transaction cost, which has been ignored for a long time, becomes a new focus under this background. As an important part of school running cost, the transaction cost is a kind of concealed cost which can not be eliminated completely with three outstanding features: zero impossible, strong concealment and unmeasured. Both overlooking the transaction cost and producing too high transaction cost will bring two negative effects into the school operation: the one is decreasing the efficiency of educational resource's allocation and use and adding the school operation cost, the other is covering the reality of educational resource use so that the operator fails to know the true structure of running cost. The present analysis shows that lack of unclear property right and self-determination freedom, educational market with no complete competition, deficiency inside the school administration system as well as uncertainty during the running consist of the main reasons of producing school transaction cost. Therefore, the efficient way of decreasing the transaction cost lies in the following four points: reforming the property right system and giving school enough self-determination freedom, strengthening the building of educational market, innovating the interior school administration system and improving control ability to uncertainty.