This paper describes the ideology of “market that governs”. Governance issues belong to the exchange paradigm rather than the value paradigm, and in order to study governance issues, political and economic should be reconstructed on the basis of value paradigm. According to the exchange paradigm, the relationship between the “market governance” and “organizational governance” is not the one of substitutions; on the contrary, market governance takes countless autonomous and complied with the general rules of the organization as the precondition. The Ronald H. Coase did not draw a clear distinction between the private property rights in the sense of “thing” and “action” which is associated with the Natural Law, and ignored the “entrepreneur” who will prompt the improvement of the system, and the result of it is that his theory remains in the “comparative institutional analysis” level, and can not constitute a real “theory of governance”. From the governance perspective, market itself includes government, and the relationship between the government and the market should be expressed precisely as the relationship between government and other subjects.To distinguish “private goods” and “public goods”artificially is equal to give the government the exclusive privilege of providing some kinds of product .What’s important is not to determine who should be better to provide a service, but to make the individuals or organizations which will be able to provide better services in the future occur.