"The question always is, will it pay to bring an extra exchange transaction under the organizing authority? At the margin, the costs of organizing within the firm will be equal either to the costs of organizing in another firm or to the costs involved in leaving the transaction to be “organised” by the price mechanism. Business men will be constantly experimenting, controlling more or less, and in this way equilibrium will be maintained. This gives the position of equilibrium for static analysis."
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Ronald Coase
Ronald Harry Coase (December 29, 1910 – September 2, 2013) was a British economist and the Clifton R. Musser Professor Emeritus of Economics at the University of Chicago Law School. He received the Nobel Prize in Economics in 1991.
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