Coase and modern regulation of tech firms?
The principles I explored regarding transaction costs and the nature of the firm have relevance to understanding modern regulatory challenges, especially with large technology platforms. These firms often internalize vast networks of user interactions. The question of how to regulate them effectively, considering the costs of imposing external rules versus allowing internal governance, and how to manage externalities they generate, is a direct application of thinking about transaction costs and the boundaries of the firm and the market.
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