5 ms·
I'm neutral on the particulars of this venture (it's probably positive). But how can anyone argue that the market is efficient when it is possible for companies
by tw1010 9y ago
I'm neutral on the particulars of this venture (it's probably positive). But how can anyone argue that the market is efficient when it is possible for companies that "is free from profit-making incentives" to exist? Just curious. How does this example fit into that framework?
- antr 9y agoThere is plenty of profit to be made... lower insurance premiums result in higher profits for Amazon, JP Morgan and BH
- JumpCrisscross 9y ago> how can anyone argue that the market is efficient when it is possible for companies that "is free from profit-making incentives" to exist? "Commoditise your complements" is an old and true business mantra. It's the reason it's good business for Google to promote an open web or investment banks to promote mutually-owned, virtually profitless settlement & clearing organizations like the DTCC and SWIFT. Much of the robber baron era's drama centred around steel trying to commoditise railroads, railroads steel, and oil the whole lot.
- dredmorbius 9y agoAny references or suggested reading on that?
- dredmorbius 9y agoDoing some research, "Commoditize your complements" (American rather than British spelling) seems to trace to Joel on Software, 2002: https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/ https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/
- qaq 9y agoAmazon has 500K employees JPM 250K if they can save 20-30% by doing this that's a very healthy profit for them