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Abd startups/kickstarters/people set prices "which should allow them to scale" - but they are always based on assumptions which sometimes turn out to be incorre
by bigiain 7y ago
Abd startups/kickstarters/people set prices "which should allow them to scale" - but they are always based on assumptions which sometimes turn out to be incorrect is that scale happens to be several orders of magnitude larger that the people who made those assumptions.
We don't want government departments to be setting fees based on worst case upper bounds of processes with poor Big O performance. Nobody wants to fund through fees or taxes, say, a DMV who are perfectly set up to reissue every single driver's license every day. There's a very reasonable assumption that driver's licenses are lost/stolen at a fairly consistent rate and to size the department and processes to perform "well enough" at that replacement rate. If a startup found a way to monetise revoked driver's licences, and started offering to buy them off people for $50 resulting in thousands of extra license replacement requests - the DMV would be perfectly entitled to change their rules and say "you only get one inexpensive license replacement every 3 years. Additional replacement license will now cost $1500 each". (Not a _super great example, because there's presumably laws against selling your driver's license, but ignoring that - I think this argument stands...)