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The New Economics of Human Interactions Walk through any airport bookstore and you’ll see dozens of well-packaged books extolling “The Road Ahead” or “The End of Geography” or some such. These books all argue, in varying shapes and forms, that “The World is Changing” and “Here’s What It Means for You.” However, much of both their theory and their evidence amounts to little more than provocatively stated hypotheses backed by anecdotal evidence. Unfortunately, such loosely organized anecdotes do not add-up to useful economic insight. We at McKinsey believe that much of this thinking is mushy because most people are trapped in an Industrial Revolution mindset about economic organization. They believe that industry is fundamentally about transformation, the act of production that involves transforming one good into another – as in bending or stamping steel to make an auto fender. The accepted way of thinking about the “economics of the firm” is steeped in assumptions that the key economi