What is the consequence of the low transaction costs for digital companies

- No ownership necessary - Focused firms outcompete broad firms (specialization is key) - Gives rise and allows comanies access to high quality service businesses (IT outsourcing, Amazon) so lower barriers to entry - Digitilization transforms access to production (outsourcing now about quality) - Existing limiation: - communication is not true coordination - chicken and egg reputation for new firms open and crowdsourcing doesn't work for all firms