For-profit Intermediary Organizations, Transaction Cost Theory

Abstract: Profit-making agencies are developing bloom for the demands of market and economy improving of our country. As a kind of economic organizations without long term history, profit-making agencies are different from those which are called interim organizations, which also have a short term history. At the same time, there are many differences between profit-making agencies and non-profit-making agencies. So this article will differentiate and analysis these conceptions.After the differentiation and analysis about those conceptions, this article will find out the section of the ripe degree about division of labor, in which profit-making agencies will exist, during the process of division of labor more and more deep in the market, and its balance point in the market, or its boundary. The work dividing will bring about not only costs but also profits. According to the different maturity degree of one work dividing, it is different of the contrast between the profits and the costs: when the work dividing is not mature, the costs will be more than the profits; when the work dividing is get to some degree, the profits will be more than the costs; and if this work dividing go on and have no new work dividing happen, it will have new things happen such as the costs being more than the profits. So, profit-making agencies will just bear the interval in which the profit being more than the cost. Profit-making agencies have existed, but how can they exist for long terms? It's necessary for some conditions. As profit-making agencies, getting profit is the most important object of these agencies, but according to the hypothesis of economic man, only profit-making agencies save transaction cost and improve the transaction efficiency can they bring welfare increase to the dealers and society, and can they survive in the market. So, it's some limitation about the fee, which is collected by profit-making agencies, and it's not discretional. Of course, it must be meet to the request of the profit-making agencies to get profit.It is have request in the institution of the profit-making agencies' appear and exist, and these requests is various, even different according to the various areas. But all of those should have some essencial institution requests, such as those are emerged in this article, distinct property rights and perfect laws.Inspect profit-making agencies is one kind of very active agencies of our country at present, and it holds a main role in our ecomomy's. This article analyses this kind of profit-making agencies from two aspects, and finds one dot of the two aspects causing the dealing costs least.In the last part, article analyses and researches the problems at present and the actuality of our country's profit-making agencies. The article analyses some kind of profit-making agencies' sitution at present of our country, and problems which have.