Change Quote by Ronald Coase
“Changes like the telephone and telegraphy, which tend to reduce the cost of organizing spatially, will tend to increase the size of the firm.”
About This Quote
Source Book: The Nature of the Firm, 1937
Reduced communication costs from technologies like telephone and telegraph expand firm size, as organizing becomes cheaper.
In simple terms: Cheaper communication lets firms grow larger.
Key Takeaway
Utilize communication tech to scale operations.
Themes
economics
technology
organization
scale
costs
Mood
analytical
forward‑looking
Type
theoretical
practical
When to use this quote
- business expansion
- remote work
- supply chain management
- entrepreneurship
Key Concepts
transaction cost economics
network effects
firm theory
Questions to Reflect On
- How does communication tech reshape your organization?
- What are the limits of scaling via technology?
A Different Perspective
Regulatory constraints may limit firm growth despite cheap communication.
![“I can't remember one [example of regulation] that's good. Regulation of transport, regulation of agriculture - agriculture is a, zoning is z. You know, you go from a to z, they are all bad. There were so many studies, and the result was quite universal: The effects were bad.” quote by Ronald Coase](https://sms4smile.com/quotes/img-quotes/02e/ronald-coase-17623_agriculture_i-can-t-remember-one-example-of-regulati_654706.jpg)
![“I can't remember [of a good regulation]. Regulation of transport, regulation of agriculture — agriculture is a, zoning is z. You know, you go from a to z, they are all bad. There were so many studies, and the result was quite universal: The effects were bad” quote by Ronald Coase](https://sms4smile.com/quotes/img-quotes/03a/ronald-coase-17623_agriculture_i-can-t-remember-of-a-good-regulation-re_974279.jpg)
