The Coasian Margin Frontier

Turns out, the real frontier in markets isn’t about new tech or flashy innovations. It’s about the Coasian margin — a concept Byrne Hobart highlights in Business — where firms can reshape entire industries simply by shifting the boundaries of their influence. The surprising part? Many companies neglect this margin because they’re focused on bigger moves, but Hobart points out that small, strategic shifts at this frontier can unlock massive value. It’s like finding a hidden seam of opportunity that’s been overlooked, and the best part? It’s often low-cost and low-risk to explore. According to Hobart, what really matters is how firms navigate these subtle boundary shifts — whether they’re bundling, unbundling, or redefining their relationships. This isn’t just theory; it’s a practical playbook for businesses looking to shift power and profit without massive overhauls. So, if you’re aiming for sustainable advantage, watch how companies leverage these margins — because that’s where the true game is now.