kaal:claim:5886442-027

When all five drivers of positive transaction costs approach zero at once, transaction costs themselves asymptotically approach zero, a point the author names the Coasean Singularity: the point at which the rationale for the firm, for hierarchical governance, for relational contracting and for most formal institutions disappears.

When all five drivers of positive transaction costs approach zero simultaneously, transaction costs themselves asymptotically approach zero. This is what I have termed the Coasean Singularity herein, that is, the point at which the very rationale for the firm

Wulf A. Kaal, The AI-to-AI Economy and the Collapse of Anthropocentric Economic Theory (2025), New Institutional Economics and Transaction-Cost Governance, p. 22
https://ssrn.com/abstract=5886442 · source PDF

Wulf A. Kaal, The AI-to-AI Economy and the Collapse of Anthropocentric Economic Theory (2025). SSRN: https://ssrn.com/abstract=5886442

• requires simultaneous elimination of opportunism, asset specificity, bounded rationality, uncertainty and costly information

definitionalsupport: arguedeconomicsgovernance-design

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