Orbiting Firms: Economic Roche Limits

The boundary of the firm remains a perennial and interesting question: where should firms begin, and where should they end? When should a firm be split apart, and when should it absorb another firm?

The Celestial Roche Limit is the distance at which a celestial object would be ripped apart by its own tidal forces as it approaches a larger object. This article derives an Economic Roche Limit to determine and explore a new boundary of the firm.