The Coasian Floor sets the lower bound of size of project a company might undertake.
- The Coasian Floor sets the lower bound of size of project a company might undertake.
- This is Clay Shirky's concept.
- The Coasian theory of the firm is that finding a price has a cost.
- You need to create a cell membrane to create boundaries between things that need to transact, and that has a cost.
- It's kind of like simulated annealing; everything starts off fluid, but as little bits of structure are discovered, a membrane starts developing.
- The membrane gets stronger and more ossified to become more efficient, but at the same time less adaptable.
- The Coasian Floor is the smallest size of project a company might undertake.
- Software in the app paradigm has a very high Coasian floor.
- You need to assume that a market of a given size makes sense for the fixed cost of building the software to make sense.