Coasean economics only suggests high transaction costs are sufficient for orgs to exist, rather than necessary.
Ie we can and do form orgs for reasons other than lowering tx costs internally, like wanting to be part of a bigger non-e onomic mission.
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This means lowering tx costs is no guarantee that org size distribution will shift to have majority mass in n=1 regime. It is getting reshaped but unclear how. Right now it looks bimodal (big-n regime platforms, n=1 free-agent) but I don’t think that’s necessary.
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If organization-mediated transactions are one end of a spectrum with currency-mediated transactions in the middle, two questions follow:
Is there a different regime st the other end of the spectrum?
What parametrizes the spectrum if it is NOT transaction costs?
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High transaction costs are a wonderful barrier to all kinds of mischief that we don’t now suffer cause it ain’t worth it
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