In recent years,the rise of the college entrance examination(gaokao)application fee-based counseling has brought a huge market potential,and the in-creasing number of participants has caused a social impact that can not be ig-nored.This paper probes into the contracting process of the College entrance ex-amination application consulting market and analyzes the purpose,nature,and method of the transaction from the perspective of embeddedness and relationship operation.It is found that the paid consulting market of gaokao is embedded in the institutional environment,and with the institutional changes,it has formed unique trading con-ditions and information advantages.Thus,it can provide economic optimal strategies.In the process of contracting,the conclusion of the transaction is highly dependent on the shaping of the relational position and the cultural concept by the two parties to the contract.By constructing the role of"teacher",the consulting agencies blur the"principal-agent"relation and obtain the legitimacy of institutional interpretation,in which trust maintenance and risk avoidance can be realized.However,the mar-ketization strategy further weakens the agency of individuals in the application,leading to systematic preference change and structural misallocation of educational resources.It is of far-reaching significance to examine unintended consequences and mechanisms of gaokao with the market and provide an instructive understanding of the way free markets work in non-economic fields such as education.
college entrance examination applicationembeddednessrelational work