Taking the example of the printing press and the publisher in Klein, Crawford & Alchian (1978, pp. 298-302—focus mainly on the
ex post problem on p. 298), try to reformulate the problem on the terms of Tirole’s Chapter on the Theory of the Firm (1988, pp. 21-34). You are advised to pay careful attention to the explicit and implicit assumptions in both texts. In particular, you should begin by trying to think which of the Tirole’s models is closer to KCA and, moreover, which aspects of such a model substantially depart from the main problem that worries KCA.