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You have a good point. I often wonder why the software and internet businesses seem so strongly winner take all, where the winner is most typically not the fir
by tgflynn 16y ago
You have a good point.
I often wonder why the software and internet businesses seem so strongly winner take all, where the winner is most typically not the first but the best (in a sense measured by the market) to execute an idea (ie. Microsoft, Google, Facebook). It seems like the classical economic view of competitive markets is becoming more and more of a fantasy world.
- livejake 16y agoYeah, it's interesting. The reasons vary for each company and books could probably be written for each one. A key factor is network effects. Read up on network effects: http://en.wikipedia.org/wiki/Network_effect http://en.wikipedia.org/wiki/Network_effect "In economics and business, a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people. When network effect is present, the value of a product or service increases as more people use it." Not just internet and software businesses, railroads, telephone networks, and financial markets are other businesses that are impacted by network effects.