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Coase's analysis proceeds by considering the conditions under which it makes sense for an entrepreneur to seek hired help instead of contracting out for some particular task

because the market is "efficient" (that is, those who are best at providing each good or service most cheaply are already doing so), it should always be cheaper to contract out than to hire

Coase noted, however, that there are a number of transaction costs to using the market

I suggest that we are seeing is the broad and deep emergence of a new, third mode of production in the digitally networked environment. I call this mode "commons-based peer-production," to distinguish it from the property- and contract-based models of firms and markets. Its central characteristic is that groups of individuals successfully collaborate on large-scale projects following a diverse cluster of motivational drives and social signals, rather than either market prices or managerial commands.

These days one witty Tweet, one clever blog post, one devastating video - forwarded to hundreds of friends at the click of a mouse - can snowball and kill a product or damage a company's share price.

It's a dramatic shift in consumer power. But what if companies could harness this power and turn it to their advantage?

At the most basic, these tools measure the volume of social media chatter. Researchers at Hewlett Packard showed that they can accurately predict a Hollywood movie's box office takings by counting how often it is mentioned on Twitter before it opens.