Re: Economic assumptions

[fnerd@smds.com (FutureNerd Steve Witham)]

Eric says-

> I just read (after a reference by Duncan Frissell on this list) an
> essay by Nobel-prize economist R. H. Coase.  The essay is called "The
> Nature of the Firm".  I have it in a collection called _The Firm, the
> Market, and the Law_, published by University of Chicago Press.
...
> -- There is a cost to using the price mechanism.
> -- Not all economic allocations use the price mechanism.
> -- Firms exist because they have lower transaction costs than the market.

There's a piece by Kevin Kelly called "Network Economics" in the latest
Whole Earth Review, about how better communications tech and 
changed business practices lower transaction costs and (along with
competition and the pace of things these days) are pushing down the
optimum size of businesses.

-fnerd
quote me




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