What do social networks have to do with company size?
Company size is a strategic decision. This decision, like all corporate strategy decision, is made by examining a company or nonprofit organization’s external environment. Coase’s theory of the firm tells us that big companies are big because they have decided to take in-house tasks that could otherwise have been performed out in the marketplace. Company […]
Are very big corporations incentivized to favor mass migration?
Yes, big companies are incentivized to favor mass migration. Why? Why are some companies very big? Coase’s theory of the firm tells us that companies exist because of transaction costs in the economy. Transaction costs are costs between two economic entities. Let’s say you’re going to buy a house. The amount that you pay as […]
What does migration have to do with company size in an economy?
One of the most clear findings in American economic history is that urbanization coincided with and contributed to the growth and proliferation of big corporations. Urbanization is a form of what demographers call internal migration. It’s migration inside of a country. External migration is migration across a national border. Migration, like any other lessening of […]
Are economic exchanges actually costless?
Economic theory traditionally assumes that economic exchanges–buying and selling–are costless activities. Research into the economic history of transaction costs between 1870 and 1970 in the United States, however, shows that transaction costs are actually a significant part of economic activity. Furthermore, transaction costs have been a steadily growing part of the American economy.
Why Do Economists Use Advanced Math Instead of Plain English to Communicate?
Economists used to communicate without using any math at all. They relied on clear thinking and plain English. A fantastic example of this is Ronald Coase’s 1937 essay on the nature of the firm. Economists should still rely on clear thinking and present their thoughts and research findings using plain English. No matter how technical, […]
