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by dnautics
1718 days ago
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> It's ironic that companies praise free market capitalism... https://en.wikipedia.org/wiki/Theory_of_the_firm Note that in "theory of the firm" language, there is a distinction between "markets" and "free market". The "free market" is broader, and subsumes the firm because you have a choice to participate/not participate in any given firm; but it is generally true that within firms you do not operate under market dynamics, and "theory of the firm" seeks to answer both descriptivist and prescriptivist questions about when firms do/should use markets. |
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When set in that basic language, I guess my observation was that companies unnecessarily increase internal transaction costs by overly distancing internal buyers and sellers (which I guess in turn forwards into Managerial and Behavioural critiques and explanations, as to "why").