Coase and the contribution of 'The Nature of the Firm'

Coase's 'The Nature of the Firm' can be read as contributing to either or both a marginalist or a comparative institutional perspective, although Coase made clear in the paper that he saw its primary contribution as belonging to the former camp. However, it has since tended to be interpreted in comparative institutional terms largely because of O. E Williamson's later work. We argue that it is fortunate for economics and Coase's legacy that Williamson chose to steer recognition of Coase's contribution in that latter direction given structural problems associated with attempting to apply Coase's marginal analysis in this context.