A decade later, Coase worked out the economic argument in much more detail in "The Nature of the Firm". (The logic works the same for business enterprises in a market economy as it does for nation- or world-sized Communist economies)
The author was an evolutionary biologist who happened to be a Marxist. Apparently, like Ralph Milliband, one of those Marxists who didn't like Russian communism! See the other comments for a link to his wikipedia page.
http://onlinelibrary.wiley.com/doi/10.1111/j.1468-0335.1937....