young-ronaldRIP Ronald Coase,

(1) his insight into firms’ ‘transaction cost’ might be supremely relevant towards an internet-driven decentralized economic organisations in the 21st century. With increasingly efficient external markets down to the long-tail level, effective firms can be much smaller yet more connected.

(2) His analysis on social cost also emphasizes the need of rules of law, such as property right, in lower the transaction the society needed to bear to resolve conflict. Notice the need of ‘rules of law’ and not arbitrary ‘government intervention’ that might even higher the social cost!

Learn more about Coase from Wikipedia