Vertical Transaction Theory and the Efficiency of Chinese Coal and Power Enterprise Vertical Transactions

The core of the vertical transactions theory lies in the balance between vertical specialization and vertical integration.Saving organization cost will have vertical of specialization economic,saving transaction costs will bring the vertical integration economic.Ideally,the intersection of two marginal cost curve decision the choice of optimal form of vertical transaction relationships(such as relations of coal and power).In this paper,the vertical coal and power transaction relationship has been classified,the theoretical framework of the vertical coal and power transaction relationship was constructed,with the specific situation of Chinese,analyzed the efficiency of vertical relationship between China's coal and power.