For this month's discussion meetup, which so happens to fall on Valentine's Day, we will discuss a very romantic topic: transaction costs! The main reading will be Ronald Coase's classic article "The Nature of the Firm" which asks why people organize into firms and hire employees rather than just hiring contractors. Coase's insight is that contracting involves a lot of transaction costs — not just literal dollars, but negotiation, contract enforcement, difficulty communicating, etc.
The suggested reading includes the original Coase paper as well as some podcast discussions and a short video summarizing the key ideas.
As always, feel free to come if you haven't done the reading.
For this month's discussion meetup, which so happens to fall on Valentine's Day, we will discuss a very romantic topic: transaction costs! The main reading will be Ronald Coase's classic article "The Nature of the Firm" which asks why people organize into firms and hire employees rather than just hiring contractors. Coase's insight is that contracting involves a lot of transaction costs — not just literal dollars, but negotiation, contract enforcement, difficulty communicating, etc.
The suggested reading includes the original Coase paper as well as some podcast discussions and a short video summarizing the key ideas.
As always, feel free to come if you haven't done the reading.
READINGS & MEDIA
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