Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Theory of the firm states that the corporation will get as large as coordination costs allow, but the other way to view that is that large corporations need to compensate for their increased coordination costs in some way.

Empirically, they can often do that successfully, as evidenced by the fact that large cloud providers are, indeed, large.

But you correctly point out that over time this almost guarantees opportunities for firms with lower coordination costs.



Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: