FIRM THEORY AND PLATFORM ECONOMY - DOI: 10.12818/P.0304-2340.2025v87p223

Abstract

The aim of this study was to demonstrate that the Platform Economy and the severe reduction in transaction costs it provides does not imply a re-reading of the Theory of the Firm. The descriptive deductive method was applied by addressing the Theory of the Firm as a governance mechanism aimed at reducing transaction costs, market understanding and the new structures provided by technology, including the Platform Economy. In the search for the results, it was essential to cut the study to the economic aspect of the firm, using the New Institutional Economics for the paradigm shift with respect to Neoclassical Economics. It is concluded that, although the Platform Economy provides substantial allocative and cost reduction advantages, there will be a time when the firm will present itself as a more advantageous means of coordination for the reduction, even minimal, of transaction costs. Factors such as business growth and scalability, compliance with laws and regulations, and market instability can make the firm, even in the context of the Platform Economy, present itself as a more efficient alternative, so that a re-reading of the Theory of the Firm is not necessary, although it is recognized that the debate is incipient, with room for new discussions.

KEYWORDS: Theory of the Firm. Governance Structures. Transaction Costs. Technology. Platform Economy.