pull down to refresh

All the other industries! In a peer to peer exchange based market people "own the fruit of their labor", as it were, they buy inputs from someone and mix those inputs with time and labor and other means of production, and sell those outputs for someone. Free market, by its nature, is peer to peer. What's the rationale for some centralizing entities like company?
this territory is moderated
0 sats \ 2 replies \ @ek 10h
What's the rationale for some centralizing entities like company?
I would guess it's efficiency, scale, divison of labour
reply
0 sats \ 0 replies \ @anon 2h
Everything you listed can be done, and I'd argue, can better be done by a per to peer exchange-based market. Market actors specialize based on comparative advantage, which is manifested by input costs and output revenues in the market. Within a company tasks are ascribed by the entrepreneurs, they're inherently inefficient. And it's interesting you mention scale cause it is precisely company that sets the limit, without it, the scale of an industry is the extent of the market, which can be viewed as all the companies in one industry combined.
reply