Economic organization particularly matters ‘when different things are being done, in the furtherance of a common end, and in definite relations to each other, i.e., in coordination.’ Because there exist ‘some innate individual differences in human capacities and aptitudes’—i.e., differences in capabilities—‘the first in the list of gains from organization results from taking advantage of [these differences]. One […] problem is to discover such differences and utilize them as far as possible.’
This broader restatement of the purpose of economic organization points to two problems. Let us call the first the coordination cost problem, and the second the search cost problem. …both problems are essentially capability ones.
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