What fully automated firms will look like

The foundation of business strategy

Our current AI conundrum would not have been a surprise to British economist Ronald Coase. At age 26, he published his legendary essay, "The Nature of the Firm." Coase grapples with a fundamental problem: If the market is efficient, shouldn’t it be cheaper for a firm to outsource the majority of its inte

... See more

The analogy to publishing also point to what will be the long-term trend for any profession affected by these models: relatively undifferentiated creators who depended on the structural bundling of idea creation and substantiation will be reduced to competing with zero marginal cost creators for attention generated and directed from Aggregators; hi... See more

In an AI-dominated future, the structure of the American economy is poised for a seismic shift. As AI slashes coordination and transaction costs, the Coase Theorem suggests a fascinating outcome: an economy teeming with smaller, more agile firms. This reduction in costs disrupts the very essence of firm size, allowing nimble players to enter the fr... See more