Having taught this paper a couple times, the best way to think about it is a binary. Why is there 1 (a firm) and not 0 (the market)? This way shifts the interna

Having taught this paper a couple times, the best way to think about it is a binary. Why is there 1 (a firm) and not 0 (the market)? This way shifts the internal/external viewpoint slightly. The resting state should be 0 (the market), we need to understand why we get 1 (the firm). All of that being said, SaaS and remote work tools should reduce the cost of transactions in the firm, which means expanded control of capital and more productive monitoring systems. In effect this means that the company can coordinate restrictions on output, monitor agents, and curb the costs imposed by the agents on the firm. Theory is ambiguous when it comes to markups, what the company charges versus the price that consumers pay. This might go up or go down. There is a lot of current debate on this. But the theory does suggest that markets should get more monopolized. Let me know if you need more. This is one of my research foci.