Procedural Control over Transaction Cost

Abstract

Coase and his followers have not pointed out the effects of transaction procedure on transaction cost saving. Using transaction procedure to control transaction cost is a kind of procedural method differing from traditional ways (defining property rights, and constructing enterprise system). Coase and other scholars’ neglects over the procedural method are not casual but for the absence of transaction procedure theory in the traditional private laws. The procedural method is significant for researches on economics and private laws.