True, and I'll admit to being lazy in my use of language there. I'm using "firm" and "organization" as though they were completely synonymous. That need not be the case, of course, depending on whose definition of "firm" you use.
Anyway, I find it interesting that Coase argued that firms exist to mitigate transaction costs resulting from imperfect information... and then Downes & Mui argued that digital technology would reduce transaction costs to a point of eliminating the need for large firms, creating what they called "The Law of Diminishing Firms."
So far we haven't seen big corporations fading away, but I still come down on the side of an eventual transition to networks of collaborating (smaller) entities displacing some of the bigger firms.
