4 ms·
> If a product or a company or a technology—one of many competing in a market—gets ahead by chance or clever strategy, increasing returns can magnify this advan
by chishaku 10y ago
> If a product or a company or a technology—one of many competing in a market—gets ahead by chance or clever strategy, increasing returns can magnify this advantage, and the product or company or technology can go on to lock in the market.
Isn't this just describing the nature of monopoly power? The worship of this ideal seems to go hand in hand with the weakening of antitrust enforcement over recent decades.
- mojuba 10y agoIt is rather describing the process of becoming a monopoly in the post-industrial economy. Mergers were the main mechanism previously, while now nobody needs M&A anymore: just bet on 20 great looking startups and one of them will become a monopoly.
- otoburb 10y ago>>[...] while now nobody needs M&A anymore: just bet on 20 great looking startups and one of them will become a monopoly. For early stage startups I agree, but the prevalence of acquire-hires and straight-up acquisitions in recent years is indicative of thriving corporate M&A departments. Given the recent wave of early-stage AI investments, another wave of not only consolidation but acquisitions is probably on the horizon.
- mojuba 10y agoYes, but what I meant was M&A is no longer a mechanism of becoming a monopoly at least in the tech world. Interestingly, I can't even think of one big acquisition in tech (excluding cable/utilities) that led to a monopoly as a result.
- laurencerowe 10y agoGoogle buying DoubleClick?