Samir’s Selection 09/11/2013 (p.m.)
The economics of companies: The man who showed why firms exist | The Economist
“Mr Coase argued that firms make economic sense because they can reduce or eliminate the “transaction cost” of going to the market by doing things in-house. It is easier to co-ordinate decisions. At the time, when communications were poor and economies of scale could be vast, this justified keeping a lot of things inside a big firm, so carmakers often owned engine-makers and other suppliers…
He taught economists that they should not just pore over numbers but look inside the organisations that produce wealth. And he set a test that every boss still has to answer: what does their firm do that cannot be done more efficiently elsewhere?”
Reshaping telecoms: The big mobile-phone reset | The Economist
“Together the transactions make the outlines of the mobile-telecoms industry clearer at three levels. The main makers of mobile-network equipment, the Chinese excepted, have now given up making handsets. The handset-makers have coalesced around three “ecosystems”: Google’s Android, Apple’s iOS and, in distant third place, Microsoft’s Windows. And the operators of mobile networks are preparing for a fresh wave of consolidation.”
Posted from Diigo. The rest of my favorite links are here.