After the Corporation

Corporations did not emerge by accident. They are coordination machines. In 2026, as transaction costs fall, we revisit why they exist — and what might be changing.

Corporations did not just reduce transaction costs. In the 20th century, they became the dominant social institution — reshaping work, identity, and the middle class.

Scale solved coordination problems. But beyond a certain point, scale creates new ones. This is the problem of diseconomies.

Disruptive innovations challenge established firms. This is the problem of the innovator's dilemma.

If firms exist because coordination is costly, what happens when coordination becomes cheaper again? The boundary of the firm is not fixed.

Platforms are not the disappearance of the corporation. They are a reconfiguration of how coordination occurs within a corporate shell.

Software first reduced coordination costs. Now autonomous agents begin to execute parts of labor itself. This changes the structure of work without eliminating it.