Why Does the Firm Arise? – Attractors, Transaction Costs and Organizational Structures

By September 23, 2014 entrepreneur No Comments

Previously we’ve briefly touched upon formal cause, attractors and intensive properties. To bring these together more comprehensively, one more topic needs to be discussed. Ronald Coase won a Noble in economics for asking “Why Does the Firm Arise”, in a market economy why are people gathered under one ‘umbrella’ to get things done”. Brave New Cloud AttractorCoase’s answer was that despite the alleged efficiency of the market economy organizations had an advantage because they reduced transaction costs. Read More @ BraveNewCloud.com.


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