Economic Analysis of Good Faith Behavior Choice for Enterprises in Market Transaction

Abstract

The theory of behavior choice for enterprise in market transaction is an important component of the theory of enterprise relationships. Based on the establishment of some concepts of transaction cost, income, anticipated value, utility ,faith in the integrity and dealing under utmost good faith, this paper analyzed the relationships between overall utilities and costs of enterprises in market transaction, the costs of transaction and the enterprises choice of good faith behaviors, the overall utilities of transaction and faith in the integrity of enterprises by the method of income and cost analysis in economics, proposed the conclusion that the establishment of severe market restraint is the necessary requirement to boost market transaction and enhance the social economic effectiveness.