Decomposability and modularity of economic interactions

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Particular requirements for institutional analysis in nature-related sectors (2008, background): “In the language of modularity we could say that the problem of externalities arises because we are working with modules that are too large, thus the solution is to disassemble them and let market selection operate on finer units’ (Marengo et al., 2001: 10).”
Where do transactions come from? Modularity, transactions, and the boundaries of firms (2007, background): “Independently, Marengo et al. (2003) observed that economic theory had at its core “an implicit theory of modularity,” in which tasks and problems are perfectly divisible.”