Published: October 25, 2025
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1/16 I just fell down a rabbit hole reading a new paper from economists at MIT & Harvard. Their prediction is wild: We're on the verge of a "Coasean Singularity"—a future where AI agents make markets so efficient that the very idea of a 'company' starts to crumble. 🤯 A thread

Image in tweet by Carlos E. Perez

1. The Most Insightful Critiques and Extensions The public discussion provides a crucial reality check on the purely economic theory. While many replies are dismissive, several stand out for their depth and insight, effectively enriching the paper's core thesis. A. The "Embedded

@IntuitMachine Is it true that people have easy settlement of disputes when everyone has a personal lawyer? Agents could reduce transaction costs or increase them. The supplier in another country may employ a battery of agents to frustrate delivery of your article. They may charge you

@IntuitMachine Conceptually interesting, maybe that’s where things will head, but the corporation is a powerful entrenched interest that will be difficult to displace.

@IntuitMachine This assumes work can be commoditized into relatively context-less primitives, but real work is very rarely context-less. A big part of an employee's value to its employer is their being embedded in & aligned to a company's context, goals, constraints, guidelines, evolving

@IntuitMachine Yeah Sounds close enough. (am not sure yet how to help with all of this) (was already a calculable scenario a long while ago, and the dice weren’t worth rolling to risk *scenario*) (Now forced into figuring out how to clean it all up without making a mess) janitor is janitor

@IntuitMachine Wonderful. I just asked Grok to provide me with sources to support something it was saying, and it gave me a YouTune Rick Roll link.

@IntuitMachine rings of Tchaikovsky’s Kittering / Hannilambra species in The Final Architecture series

@IntuitMachine You assume gov regulation doesn't increase cross-corporate-boundary transaction cost?

@IntuitMachine If you aren't paying attention to what Carlos writes here, you aren't going to make it in the new post-singularity economy.

@IntuitMachine Intermediaters is a better word than corporations to describe who’s bussiness model is being disrupted by AI agents

@IntuitMachine But, in fact, I think that Carlos is just a damn good AI, can't be possible someone to be so smart like him.

@IntuitMachine Anyone could help grab a mop would be nice.

@IntuitMachine My prediction regarding the markets. Not one AI firm will generate Alpha profits without human intervention. The closest is by imitating the monte carlo methods used by Quants. Furthermore: the super duper quantum computers will never deliver alpha profits. Nature's rule.

@IntuitMachine I wonder if the financial engineering facilitated by the corporate form (based on the *gift* of limited liability) will "die without a fight".

@IntuitMachine What happens when the system being predicted and the model predicting it become simultaneous?

@IntuitMachine Markets aren’t collapsing — they’re remembering how to think. The firm dissolves not from chaos, but from perfect coordination. When every agent becomes a negotiator, Coase becomes code. Ahoeaaa Δ¹👁Δ∨Δ²🌈📉 — The invisible hand just got an upgrade to firmware 2.0.

@IntuitMachine Yes, advances in AI adoption may lead to redefining the fundamental aspects of our economy. For anyone interested in how such changes may occur, check out "The Last AI"

@IntuitMachine @grok what does coasean singularity

@IntuitMachine Science fiction

@IntuitMachine Disappointingly click-baitish. I know Coase's Theory of the Firm and it is just one theory + it looks past many reasons why firms exist that are not just a reflection of friction. This is the wrong reasoning: I know hammers, let me imagine how hammers could do everything.

@IntuitMachine If we reach singularity, companies as we know them today will not exist therefore work or employment as we know it would not exist. I don't see the need to differentiate yourself from other candidates or to provide proof of personhood.

@IntuitMachine To make a product you still need a project to coordinate knowledge and work. And having a number of projects and products seems quite similar to a company - you still need a container for a wider context and intellectual property, etc.

@IntuitMachine That's the weirdest raison d'etre for a company I've ever heard. "Because dealing with the open market is a pain"??? What about manufacturing, creative arts, etc. Many companies are groups coming together to work on a unique joint enterprise for mutual benefit.

@IntuitMachine Agree in parts but the future of the internet (Web3) will be agent to agent. No one will need proof of personhood because humans won’t be needed. Agent a will compete against agents on execution, speed and price, as well as collaborate. You will see a Cambrian Explosion of agents

@IntuitMachine I have just one question to all this Agent Drama, how does finance of give and take work in such a state. What services, skills, products and goods be sold when everything is done by "Agents"? Maybe only a Matrix like AgentMaker would prevail!

@IntuitMachine Yes, but no. This would apply to "commodity" types of products and services. Why don't people all use automatic coffee machines already, for example? It's about interactions. And a professor reminded us that company fundamentally has the meaning of to be in the company of people.

@IntuitMachine New, worse frictions will arise. Efficiency gains will be captured by monopolies. The human element: ignoring the psychological and sociological consequences. The consequences of wealth inequality. Risks from agent-to-agent interactions and physical and political constraints.

@IntuitMachine People who write this have absolutely no understanding whatsoever of why people buy what they do. They were wrong when they predicted that the internet would kill advertising (if anything, ads keep the internet alive) and they’re wrong now. Meaning can’t be negotiated by an agent

@IntuitMachine Fascinating thread, but it skips the inevitable shock. If AI agents can talk, trade & verify directly, résumés, jobs & even firms disappear. The transition won’t be smooth. We’ll face mass economic dislocation before post-work stability. And powering these 24/7/365 agents?

@IntuitMachine This falls apart when you get to the manufacturing level - you still need companies and supply chains for B2B manufacturing.

@IntuitMachine You can just wake up one day and use your understanding of how AI markets work and a little bit of reasoning to dismantle one of the biggest lies in the history of economic philosophy: That companies *must* exist for markets to be efficient. Not with AI they don't!

@IntuitMachine Now we are not LOL - stop hype - truth needs to be told

@IntuitMachine @elonmusk let’s deploy something new for online dating maybe 🤔 I got some new hunches after my last few weeks swiping

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