Research On The Transaction Cost Of Purchasing Public Services In An Incomplete Market

The promotion of equalization of basic public services in the 13th Five-Year Plan calls for diversified modes of the supply of public services.The public services shouldn't be provided directly as long as they can be purchased from social organizations,public institutions and enterprises.Instead,government need to look for right partners through competitive bidding and negotiation in those fields proved to be effective.Coinciding with the current transformation of government functions,the direction of policy direction often leads to blind enthusiasm in practice.The thinking mode of public service purchase means a different public management mode.Practices have showed that the purchases of public services aren't a simply one-way process and static relationship.The differences of the institutional environment and the calculations of self-interests,as well as the complexities rooted in public services promise the evolution and two-way dynamic of purchases of public services.Transaction costs and realization of public interests originated from this process determine the modes'performance of public service supplies.Because of this,combined with the special properties of public services to buy,based on imperfect market in public service purchase transaction costs as the research topic,comprehensive utilization of the method of literature research,case analysis and model to deduce,reveals the public service from the Angle of system running friction purchase transaction costs influence how to breed and service performance.The main conclusions of the study are as follows:First,the reasons for the high transaction cost of public service purchase are endogenous to the characteristics of public service and purchase,which include the weak competitiveness of purchase market,the complexity of service itself,the incompleteness of purchase contract and the value factors contained in public service.Second,the transaction costs of public service purchase arise from two processes,namely,macro market management and micro contract management.The characteristics of public service purchase determine the existence of these two processes.At the macro level,transaction costs arise from strategic management of government market management,including the cost of creating and maintaining market competition,the cost of monitoring and evaluating supplier performance,and the opportunity cost caused by the occupation of administrative resources.At the micro level,transaction costs are generated from the cross-border governance costs of government contract management,including contract formulation costs,bargaining costs,non-adaptive costs,start-up and operation costs.Third,strategic interactions between the government and suppliers can also generate transaction costs.In the limited rationality and incomplete information,under the assumption of the government and suppliers around the earnings forecast strategy interaction increased the complexity of the buying process,yield of equilibrium under the influence of multiple variables and optimal equilibrium or mixed equilibrium results as a condition,set the liquidated damages clause or the select multiple suppliers can change this kind of balance.In chapter arrangement when discussing the general theories and propositions of public service purchase,the first chapter emphasizes the phenomenon of reverse purchase,which is often covered by public service purchase in practice.The second chapter explains the characteristics of public service purchase from the four aspects of market,service,contract and attribute,and then leads to the third and fourth chapters.The third chapter focuses on the "market" characteristics,detailing the government's market management strategy to create and maintain competition.Chapter four focuses on the characteristics of "service" and "contract" and explains the process of government contract management.In chapter 5,the government and suppliers are incorporated into a game theory analysis model to demonstrate the complexity of the purchase process of public services with the expectation of revenue as the core.Finally,the applicability of the theory is verified by two cases in chapter 6.