Thanks for the Ronald Coase reference and reminder about the important paper about the Nature of the Firm. I think it is an exceptionally good model how to unde

Thanks for the Ronald Coase reference and reminder about the important paper about the Nature of the Firm. I think it is an exceptionally good model how to understand the substance of that article. It reminded me a long-ago reading of an essay by W. Durant on history of humanity. He eloquently (and non-persuasively) argues that we form groups, firms, societies, clubs, etc to increase our competitiveness (wrt. other such groups/individuals). In other words nature set the law of competition as the core, and we come to cooperate with others only when it increases our chances to become more competitive (clearly scale efficiency and cost-offset, division of labor, etc). In non-economics language I think it hits the main argument of Nature of the Firm paper, yet, Durant points out that this is due to our innate biological reality.