  The connotation of transaction costs has never been definitively determined,
and the independence of the concept has never been rigorously demonstrated.
This paper delves into the thought systems of several prominent economists in
the development of transaction cost economics, starting from first-hand
materials. By combining multiple works of the authors, it reconstructs the true
meanings and identifies endogeneity issues and logical inconsistencies. The
conclusion of this paper is bold. Previous research has been largely filled
with misinterpretations and misunderstandings, as people have focused solely on
the wording of transaction cost definitions, neglecting the nature of
transaction costs. The intention of transaction cost theory has been
unwittingly assimilated into the objects it intends to criticize. After
delineating the framework of "transaction costs-property rights-competition",
this paper reconstructs the concept of transaction costs and the history of
transaction cost concepts, providing a direct response to this theoretical
puzzle that has plagued the academic community for nearly a century.
