Principal: Organizations
Organizations are much like people
- Literally and legally, as ëincorporationí suggests
Scale has a quality all its own
- Easier to trust a group of people over time with internal checks and balances and standards
- Anytime trust has to be shared with a different principal
Credentials bind people to devices
- It is more efficient to intermediate relationships
- Reflects the same transaction costs as optimal firm-size theory does in real world economics