On the Market Rule and Related Institutional Arrangement

Philosophy of the Social Sciences 35 (2):5-11 (2005)
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Abstract

China's economic transition in the market failure caused chaos in the market, improve the effectiveness of market regulation, to maintain the market order is an important way to establish a market standard, is the establishment of market rules. Different theoretical paradigm of the market rules have different requirements, competition rules of the market to competition paradigm requires the center, the system paradigm demands through institutional arrangements to regulate competition and constraints to ensure the execution of contracts, while reducing market transaction costs. In the course of the economic transition in China, market failing has caused market disorders. The most important way is to establish a market rule. Different theory paradigms need different market rules. The theory of Competition paradigm demands competition as a role. The theory of institutional paradigm needs to restrain and standardize the competition action, to guarantee the contract, as well to lower the market exchange cost

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