To understand what is happening in these situations it is necessary to abandon the artificial view that firms are individuals, referred to above. The fact that the firm is an organization, and therefore capable of strategy, and not just a nexus of markets was first recognized in economic theory in the 1930s, in the theory of the firm. The main use that orthodox economics makes of this theory is in considering the trade-off between market and organization that confronts companies. It has been left to unconventional (“institutional”) economists and organization theorists to consider some of the wider implications of the idea of the firm as an organization, in particular the political implications. The larger a firm becomes, the stronger and better informed will be the organizational hierarchy that it can establish, and the existence of organization thereby becomes a source of entry barriers. True, in the long run this growing size can present problems, as the enterprise becomes top-heavy. But a firm that is sufficiently well constructed that it has reflexive capacity can even anticipate these problems. We should therefore anticipate a growing role for giant firms with extensive organizational resources within the economy.