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Simple calculus shows that under certain models of consumer markets there is space for two big players. Optimal pricing of commodity goods shows that the share
by RiderOfGiraffes 16y ago
Simple calculus shows that under certain models of consumer markets there is space for two big players. Optimal pricing of commodity goods shows that the share of the market is provably strictly less than 50% at the optimum price.
OK, now Google and Apple aren't producing commodity goods, and the model is extremely simplistic, but nonetheless there is probably space for two big players.
http://news.ycombinator.com/item?id=488663 http://news.ycombinator.com/item?id=488663
- NickPollard 16y agoInteresting link, but it seems (to me) to make a mathematical mistake in that it assumes the drop-off factor (a) to be greater than 1 (in that it assumes 2a >= 2), when at the top it asserts only that a > 0.
- RiderOfGiraffes 16y agoThere was a mistake, but it wasn't the one you think. The derivative was incorrectly stated as N-2ap instead of N-2ap+ac. I've corrected it now. I'd appreciate another detailed check of the revised calculations.