The Development of the Firm Theory Based on the Analysis of Transaction Cost Economics and Evolutionary Economics

The firm theory tells reasons why it exists and where is the boundary, and various theories give their own views differently. This paper tries to classify firm theory into two types, namely transaction cost economics theory and evolutionary economics theory which based on static and dynamical analysis, so as to restudy the relations of these theories and reconstruct a new development of the firm theory. The transaction cost economics regards a firm as a contract, while the evolutionary economics rediscovers the nature of the firm and regards it as a platform including kinds of resources.