Ronald Coase

The main reason why it is profitable to establish a firm would seem to be that there is a cost of using the price mechanism. The most obvious cost of 'organizing' production through the price mechanism is that of discovering what the relevant prices are.

The original entrepreneur may initiate the initial purpose, but, in a sense, like a parent that has children, the children have their own destiny, and at some point, that can veer off away from the wishes the parent might have for it.

I have friends of mine that are actors or singers, and they're the classic guys where, they're onstage, and they're like, 'Okay, the blonde in the third row, seat 24, bring her to my dressing room.' I've never, never taken advantage of that, I swear to God.