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yes i wonder about that too. i never thought of myself as someone interested in economics, but i guess thats where you'd look for answers to why some markets ar
by the_cat_kittles 9y ago
yes i wonder about that too. i never thought of myself as someone interested in economics, but i guess thats where you'd look for answers to why some markets are weighted towards winner take all and some aren't. my guess off the top is that it has to do with how easy it is to switch between two competing products, and how economies of scale work in the industry. if there is a big economy of scale, and its easy to switch between competitors, i think that makes for the biggest winner take all scenario.
- kevinnk 9y agoI think the more fundamental connection is that when goods are perfect subsitutes for each other, under perfect information you always choose the "cheaper" good (where "cheap" is defined by whatever metric you're using). Somewhat ironically, this fact actually has connections to the concept of dual variables in constrained optimization problems, the theory of which was largely developed in the Soviet Union for use in central planning.
- the_cat_kittles 9y agovery interesting! that seems to make sense. do you know of any good writing on examples?