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At least some portion of those network effects are to do with economies of scale as relates to tax avoidance and creative accounting. Levelling the playing fiel

At least some portion of those network effects are to do with economies of scale as relates to tax avoidance and creative accounting. Levelling the playing field can only increase competition in the marketplace.

pas 7y ago
Just competition is not enough on the long term, some technological change is needed too to push prices down. (If there are a lot of small vendors all just on the verge of bankruptcy that doesn't really help anyone.) The typical case is small shops in all the cities around the world that are in very efficient markets. For example here anyone can start a hairdressing salon and can employ anyone. No qualifications needed at all. Only the venue has to pass some basic cleanness inspection. Consequently there is no big hairdressing chain, there's not much going on in hairdressing for the past decades. There's not an Amazon of hairdressing, and no one is investing billions into hairdressing R&D to become more profitable. It might change if automation reaches that level.
- RugnirViking 7y ago
  I'm not sure that's true though, If large hairdressing technological advancement was indeed possible then why hasn't somebody done it yet? It's not like there is any shortage of people pivoting to entirely disrupt new industries when technology allows. As for whether competition in that market is effective, I find that hairdressing is a great healthy market. No price gouging, plenty of options for the consumer. The price reflects the amount of time of individual attention spent by a trained professional with little to nothing on top. (Don't like your barber? literally just go for a walk and you can probably find a new one)
  - pas 7y ago
    Of course it's possible. You can always do something better, faster, cheaper, with more accuracy, precision, style, etc. There is R&D in the tools used for hairdressing (scissors, chemicals, hairdriers, chairs, hairwasher chair), just as there is R&D in shaving tools (even if it's just adding one more blade, or using a better battery for electric ones). Automation will eventually eat the world, why would hairdressing and shaving be the exceptions? Maybe that doesn't count as technological advancement strictly in those fields, but it'll certainly have an effect on those markets. > If large hairdressing technological advancement was indeed possible then why hasn't somebody done it yet? There's always a first. And likely it will come from some unexpected place, enabled by either some very general change (automation) or from some obscure thing.

pas 7y ago

Just competition is not enough on the long term, some technological change is needed too to push prices down. (If there are a lot of small vendors all just on the verge of bankruptcy that doesn't really help anyone.) The typical case is small shops in all the cities around the world that are in very efficient markets. For example here anyone can start a hairdressing salon and can employ anyone. No qualifications needed at all. Only the venue has to pass some basic cleanness inspection. Consequently there is no big hairdressing chain, there's not much going on in hairdressing for the past decades. There's not an Amazon of hairdressing, and no one is investing billions into hairdressing R&D to become more profitable. It might change if automation reaches that level.

RugnirViking 7y ago
I'm not sure that's true though, If large hairdressing technological advancement was indeed possible then why hasn't somebody done it yet? It's not like there is any shortage of people pivoting to entirely disrupt new industries when technology allows. As for whether competition in that market is effective, I find that hairdressing is a great healthy market. No price gouging, plenty of options for the consumer. The price reflects the amount of time of individual attention spent by a trained professional with little to nothing on top. (Don't like your barber? literally just go for a walk and you can probably find a new one)
- pas 7y ago
  Of course it's possible. You can always do something better, faster, cheaper, with more accuracy, precision, style, etc. There is R&D in the tools used for hairdressing (scissors, chemicals, hairdriers, chairs, hairwasher chair), just as there is R&D in shaving tools (even if it's just adding one more blade, or using a better battery for electric ones). Automation will eventually eat the world, why would hairdressing and shaving be the exceptions? Maybe that doesn't count as technological advancement strictly in those fields, but it'll certainly have an effect on those markets. > If large hairdressing technological advancement was indeed possible then why hasn't somebody done it yet? There's always a first. And likely it will come from some unexpected place, enabled by either some very general change (automation) or from some obscure thing.