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jerryking : ronald_coase   4

The Rise of the On-Demand Economy - The CIO Report - WSJ
March 13, 2015| WSJ | By IRVING WLADAWSKY-BERGER.

we are seeing the rise of what The Economist called the On-Demand Economy in a recent article....Manufacturing jobs have been automated out of existence or outsourced abroad, while big companies have abandoned lifetime employment. Some 53m American workers already work as freelancers....now the sharing economy is evolving into something new. Ubiquitous communications, freelance work forces and low transaction costs are giving rise to the on-demand company, which aims to apply the principles of Uber or Airbnb to a much broader range of markets....A well-managed company strives to achieve an optimal balance between what work gets done within and outside its boundaries.

Advances in information and communication technologies are having a huge impact on the structure of companies....Where is the future of work heading in such an economy? “Freelance workers available at a moment’s notice will reshape the nature of companies and the structure of careers,”...Ubiquitous communications and very low transaction costs are giving rise to a new class of firm, the on-demand company. These firms aim to efficiently bring together consumers and suppliers of goods and services with their highly scalable platforms and innovative applications...
digital_economy  sharing_economy  Uber  Lyft  Ronald_Coase  Coase's_Law  transaction_costs  freelancing  on-demand  Outsourcing  gig_economy  Irving_Wladawsky-Berger 
march 2015 by jerryking
Coase’s theories helped understanding of Internet’s impact on how business is done
Sep. 08 2013 |The Globe and Mail | DON TAPSCOTT.

Mr. Coase wondered why there was no market within the firm. Why is it unprofitable to have each worker, each step in the production process, become an independent buyer and seller? Why doesn’t the draftsperson auction their services to the engineer? Why is it that the engineer does not sell designs to the highest bidder? Mr. Coase argued that preventing this from happening created marketplace friction.

Mr. Coase argued that this friction gave rise to transaction costs – or to put it more broadly, collaboration or relationship costs. There are three types of these relationship costs. First are search costs, such as the hunt for appropriate suppliers. Second are contractual costs, including price and contract negotiations. Third are the co-ordination costs of meshing the different products and processes.

The upshot is that most vertically integrated corporations found it cheaper and simpler to perform most functions in-house, rather than incurring the cost, hassle and risk of constant transactions with outside partners.

It makes sense for a firm to expand until the cost of performing a transaction inside the firm exceeds the cost of performing the transaction outside the firm. This is why large, insular corporations prevailed in the industrial economy.
Don_Tapscott  Ronald_Coase  transaction_costs  frictions  economists  large_companies  Coase's_Law  industrial_economy 
september 2013 by jerryking
Ronald H. Coase, a Law Professor and Leading Economist, Dies at 102 - NYTimes.com
By PATRICK J. LYONS
Published: September 3, 2013

At the University of London, he was on his way to becoming an industrial lawyer when a seminar with Sir Arnold Plant, a well-known economist of the time, changed his focus again, this time for good. After graduating from the London School of Economics, he taught there and at other British universities, and married Marion Ruth Hartung in 1937. The couple immigrated to the United States in 1951, when he joined the faculty of the State University of New York at Buffalo. He left for the University of Virginia in 1958.

While teaching at Virginia, Professor Coase submitted his essay about the F.C.C. to The Journal of Law and Economics, a new periodical at the University of Chicago. The astonished faculty there wondered, according to one of their number, George J. Stigler, “how so fine an economist could make such an obvious mistake.” They invited Professor Coase to dine at the home of Aaron Director, the founder of the journal, and explain his views to a group that included Milton Friedman and several other Nobel laureates-to-be.

“In the course of two hours of argument, the vote went from 20 against and one for Coase, to 21 for Coase,” Professor Stigler later wrote. “What an exhilarating event! I lamented afterward that we had not had the clairvoyance to tape it.” Professor Coase was asked to expand on the ideas in that essay for the journal. The result was “The Problem of Social Cost.”

Professor Coase was soon invited to become editor of the journal, and to join the Chicago faculty, where he stayed the rest of his life, disdaining the equation-heavy approach of what he called “blackboard economics” in favor of insights grounded in real markets and human behavior.

By identifying transaction costs and explaining their effects, the Royal Swedish Academy of Sciences wrote in announcing his prize in 1991, “Coase may be said to have identified a new set of ‘elementary particles’ in the economic system.”
obituaries  economists  lawyers  NPSIA  regulation  property_rights  human_behavior  transaction_costs  FCC  broadcasting  Ronald_Coase  Nobel_Prizes  Coase's_Law  behaviours  frictions  social_costs 
september 2013 by jerryking
Crovitz: 'Spectrum Auctions'—There's an App for That - WSJ.com
July 18, 2011 | WSJ | By L. GORDON CROVITZ

Spectrum Auctions? There's an App for That
It only took 50 years for the feds to realize that economist Ronald Coase was right.
L._Gordon_Crovtiz  economists  auctions  wireless  wireless_networks  Ronald_Coase  wireless_spectrum  Coase's_Law 
july 2012 by jerryking

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