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Another model which already exists today is the 'Hollywood model'. People will get together, create a movie and then disband once the movie is done. In 'the na
by Monkeyget 14y ago
Another model which already exists today is the 'Hollywood model'. People will get together, create a movie and then disband once the movie is done.
In 'the nature of the firm'[0] Donald Coase asked himself why there are businesses with employees at all when an entrepreneur could instead contract the work, a la Hollywood model. The ultimate answer is that the transaction cost of having to go to a market every time you need to get something done outweighs the inefficiencies of having employees. He got the Nobel prize for that.
I got acquainted of those notions trough the book 'Here 'Comes Everybody' [1]. It talks about the way the internet reduce transaction costs and allow new forms of sharing and collaboration that weren't possible before.
[0] http://en.wikipedia.org/wiki/Ronald_Coase#The_Nature_of_the_Firm http://en.wikipedia.org/wiki/Ronald_Coase#The_Nature_of_the_...
[1] http://en.wikipedia.org/wiki/Here_Comes_Everybody http://en.wikipedia.org/wiki/Here_Comes_Everybody
- spaghetti 14y ago"The ultimate answer is that the transaction cost of having to go to a market every time you need to get something done outweighs the inefficiencies of having employees." Definitely an interesting idea. I wonder how it varies across different businesses? Also I wonder if it will be as true in ten years as it is today?