Economics Doctor

SG&A refers to Selling, General or Administrative expenses. This is an accounting term that refers to a line on the Income Statement. From an economist’s perspective, these are essentially all transaction costs except for General Expenses other than insurance. Selling Expenses Selling expenses are a company’s costs incurred to interact with its customers. These include: […]

Company Size and Corporate Strategy Company size is a strategic decision. This decision, like all corporate strategy decision, is made by examining a company or nonprofit organization’s external environment. Coase’s theory of the firm tells us that big companies are big because they have decided to take in-house tasks that could otherwise have been performed […]

Company size is a strategic decision. This decision, like all corporate strategy decision, is made by examining a company or nonprofit organization’s external environment. Coase’s theory of the firm tells us that big companies are big because they have decided to take in-house tasks that could otherwise have been performed out in the marketplace. Company […]

Yes, big companies are incentivized to favor mass migration. Why? Why are some companies very big? Coase’s theory of the firm tells us that companies exist because of transaction costs in the economy. Transaction costs are costs between two economic entities. Let’s say you’re going to buy a house. The amount that you pay as […]

One of the most clear findings in American economic history is that urbanization coincided with and contributed to the growth and proliferation of big corporations. Urbanization is a form of what demographers call internal migration. It’s migration inside of a country. External migration is migration across a national border. Migration, like any other lessening of […]