4 ms·
Joel is correct, but there are cases where the "trendy couple sipping Chardonnay in their living room outsourcing everything" is in fact adding value, namely, t
by ataggart 16y ago
Joel is correct, but there are cases where the "trendy couple sipping Chardonnay in their living room outsourcing everything" is in fact adding value, namely, their entrepreneurial insight to recognize that a market is in disequilibrium, that current means are available to meet current demands, but that such has gone unnoticed. In fact, having such insights is what defines an entrepreneur.
I would recommend that anyone interested in the economic theory of entrepreneurship read Israel Kirzner's seminal work, "Competition and entrepreneurship."
http://books.google.com/books?id=OFNVW3N9hUUC http://books.google.com/books?id=OFNVW3N9hUUC
- kragen 16y agoSometimes they're adding the value of handling the hassle of outsourcing: firing suppliers who don't deliver, knowing those who do, planning for risks ahead of time.
- jsharpe 16y agoExactly. Coordination of different systems is added value. It's like mechanical turk. Amazon is not actually providing anything except a connection between those who need work done, and those who are willing to do it. They're not adding anything besides a connection.