It occurred to me when I was attending a talk by John Kay about "rents" in the creative sector that transaction costs are somewhat related to phatics. Consider the traditional roles in publishing: there's the AUTHOR, there's the PUBLISHER, and the DISTRIBUTOR. At each step, AUTHOR->PUBLISHER and PUBLISHER->DISTRIBUTOR, DISTRIBUTOR->READER there is some transaction cost, e.g. traditionally the author has to send out letters to lots of different publishers looking for someone who will take on the manuscript, and that's a lot of work. So, we introduce some "optimizations" and further roles, e.g. the AUTHOR might hire an AGENT who will intermediate with publishers. Any one of these roles or connections might have some phatic dimension, but the AGENT in particular is someone who "speaks on behalf" of the author. Coase's theory of the firm is basically that corporate bodies come into existence in order to optimize, so that rat...