Disintermediation and Politics

code_rage writes "Everett Ehrlich (capsule biography) writes an article in the Washington Post that examines Howard Dean's effective use of the internet to create a political organization. He says that Dean has created a 'virtual' party that has taken over the only remaining asset of value, the brand name of the Democratic party. His analysis refers to the theory of Nobel-winning economist Ronald Coase: that the size of an organization is determined by the cost of gathering information. Ehrlich's article makes some predictions about the effect that Dean's strategy will have on the political system." In a related story, there's an mp3 interview with Dick Morris, along with a couple of (appropriately) blog posts about it.