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@@ -147,7 +147,7 @@ have been undertaken and $t=1$ indicating that the good is complete.

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The subcontracting scheme by which tasks are allocated across firms is illustrated in the figure below

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```{figure} /_static/lecture_specific/coase/subcontracting.png

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:align: center

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```

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In this example,

@@ -167,7 +167,7 @@ At this point, production unfolds in the opposite direction (i.e., from upstream

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The length of the interval of stages (range of tasks) carried out by firm $i$ is denoted by $\ell_i$.

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```{figure} /_static/lecture_specific/coase/allocation.png

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:align: center

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```

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Each firm chooses only its *upstream* boundary, treating its downstream boundary as given.

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