Working Paper Argues AI Can Break the Coasian Ceiling on Firm Size
zetalyrae · x · 2026-10-31
Economist Seth Lazar argues that 'past a certain threshold, AI capabilities can break the Coasian ceiling on firm size' — AI slashing coordination costs could let firms grow far beyond traditional boundaries set by transaction costs. He asks whether we should welcome this, and links the underlying working paper. The essay is circulating widely among AI-focused researchers debating AI's structural impact on organizations and the economy.
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