“An organization will tend to grow only when the advantages that can be gotten from directing the work of additional employees are less than the transaction costs of managing them.”

“A firm is successful when the costs of directing employee effort are lower than the potential gain from directing.”

“The more people are involved in a given task, the more potential agreements need to be negotiated to do anything, and the greater the transaction costs.”

“[B]ecause the minimum costs of being an organization in the first place are relatively high, certain activities may have some value but not enough to make them worth pursuing in any organized way. New social tools are altering this equation by lowering the costs of coordinating group action.”

“We use the word 'organization' to mean both the state of being organized and the groups that do the organizing.”

“Wikipedia took the idea of peer review and applied it to volunteers on a global scale, becoming the most important English reference work in less than 10 years. Yet the cumulative time devoted to creating Wikipedia, something like 100 million hours of human thought, is expended by Americans every weekend, just watching ads.”

“The low cost of aggregating information also allowed the formalization of sharing [...].”