Cost: The ability of the inner net to allow firms to find out just one of the most simple transaction costs that arise when you use the outside market, which is, what is the price? Right? It takes timebu wou want to go by a car, you can't look upell, what's the price far now? Well, now we almost can. And i'm thinking, really thinking about the supply chain. You get a lot of information that before had to be gained with a lot more uncertainty. So you'd expect that to change how firms are organized,. what they produce inhouse verses outsideeh d, these things ore happeningll all the time.
Don Boudreaux of George Mason University and Cafe Hayek talks with EconTalk host Russ Roberts about the intellectual legacy of Ronald Coase. The conversation centers on Coase's four most important academic articles. Most of the discussion is on two of those articles, "The Nature of the Firm," which continues to influence how economists think of firms and transaction costs, and "The Problem of Social Cost," Coase's pathbreaking work on externalities.