Here comes everybody (clay shirky) p44-5
WHEN TRANSACTION COSTS FALL OR COLLAPSE (Cosean Floor)- large firms increase in size
- small firms are more effective as they are doing business at a lower cost
“anyone who has worked in an organisation with more than a dozen employees recognises institutional costs. Anytime you are faced with too many meetings, too much paperwork, or too many layers of approval…you are dealing with those costs…everyone complaining about institutional overhead, without much hope of changing things…managerial oversight was just one cost of doing business”
- tasks not worth managerial oversight dont happen
- certain goods or services are not pursued because of high transaction costs (sometimes we get poor quality because of this)
Eg of Cosean floor
- aggregated content that emerges from self interest sharing due to new sharing tools
- eg aggregating amateur documentation of london transit bombings
- this is a collapse of transaction costs
- create an environment to naturally grow (self emerge) what you want to achieve
