For the last hundred years the big organizational question has been whether any given task was best taken on by the state, directing the effort in a planned way, or by businesses competing in a market. This debate was based on the universal and unspoken supposition that people couldn’t simply self-assemble, the choice between markets and managed effort assumed that there was no third alternative. Now there is. Our electronic networks are enabling novel forms of collective action, enabling the creation of collaborative groups that are larger and more distributed than at any other time in history. The scope of work that can be done by noninstitutional groups is a profound challenge to the status quo.

The collapse of transaction costs makes it easier for people to get together–so much easier, in fact, that it is changing the world.