3 ms·
Reminds me of this article in the Economist: "Why do firms exist?": "His central insight was that firms exist because going to the market all the time can impo
by Emore 16y ago
Reminds me of this article in the Economist: "Why do firms exist?":
"His central insight was that firms exist because going to the market all the time can impose heavy transaction costs. You need to hire workers, negotiate prices and enforce contracts, to name but three time-consuming activities. A firm is essentially a device for creating long-term contracts when short-term contracts are too bothersome."
EDIT: link: http://www.economist.com/node/17730360 http://www.economist.com/node/17730360
- crasshopper 16y agoCoase's 1991 Bank of Sweden Prize for ^: http://nobelprize.org/nobel_prizes/economics/laureates/1991/press.html http://nobelprize.org/nobel_prizes/economics/laureates/1991/... Oliver Williamson's 2009 Bank of Sweden prize updated Coase's theories. Speed read: http://nobelprize.org/nobel_prizes/economics/laureates/2009/speedread.html http://nobelprize.org/nobel_prizes/economics/laureates/2009/...