It’s time to think over the appropriateness for the present and the prospects of economics. That work should be full of sufferings. In this paper I’ll focus the coordinating power among the sections inside the firm. There are the two kinds of behavior between workers and employers, cooperative and hostile. These behaviors are
implemented under the pressure of situations I called rivalry. They are utilized for deciding the level of transaction cost. The cost decides also the internal price and the section’s advantage issuing from its own suitable negotiation, basing on the size of R & D.
The activity process of decision-making of an organization is indispensable for the analysis and the boundary of the various internal organization. The internal economic analysis covers the important theory and the empirical knowledge of some hierarchical relations between members inside the firm, that is, employer as a
principal and worker as an agent. 'Inside Transactions of the Firm' looks like to be so attractive. The last section-the coordinating mechanism and rivalry-includes the great ideas. People try to do the best for themselves, when things turn out badly for the all.