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The fallacy here is the engagement of "long-run" reasoning, which assumes that market inefficiencies are static long enough for entrepreneurs to overcome the va
by leot 16y ago
The fallacy here is the engagement of "long-run" reasoning, which assumes that market inefficiencies are static long enough for entrepreneurs to overcome the various barriers to entry (the long-run requires an assumption of stationarity).
It's an empirical question whether entrepreneurs can reach the gold when it's constantly moving, and whether the economic cost of doing so is less than the cost of some smart regulation.
- warrenwilkinson 16y agoIf the incumbents close the opportunity by offering better service -- than the original parents problem no longer exists. Businesses compete with potential competitors and potential technologies too. The higher the price, the more incentive for your users to look at alternative solutions (which includes starting a competing service). Greater demand for alternatives will be answered.