Intermediary——The Transaction Network and Its Agents Predicament

The existence of transaction cost and the transaction time lag causes the transaction benefits to suffer some losses.The basic function of the market intermediation is to reduce the impacts of transaction cost and transaction time lag,so as to increase the transaction efficiency of the whole market.In order to realize its function,the intermediary creates the "bid-ask" price mechanism,makes itself the integrated information holder of the market transaction,acts as the transaction matchmaker,and organizes market transactions.The role of the market integrated information holder enables intermediary to work as transaction agency and the reputation incentive provided by the principal to the intermediary effectively maintains a good implementation of the control rights to the transacted goods obtained by the intermediary in a non-trading way.The intermediary behavior of transaction matching makes the trading network with the intermediary at the core observable and the behavior of agency makes some natures of the continually existing transaction network in the time dimension easier understood.More important,the observation and understanding of these natures may help to set up a bridge across the two theories of market and planning.