I agree with most of what you write but “Either side can end the transaction when it stops making economic sense.” Is true but only when rationality is assumed and that the interests of those doing the firing actually align with the overall corporation.

Corporations are made of people and the structures can be very dysfunctional. I’ve seen it and I’m sure it’s common elsewhere, many decisions are made with no actual rational understanding of “economic sense”. An example is firing someone to save costs but needing to then hire 2 new people to replace them, increasing communication costs and having to pay a training cost.