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"costly one-time background checks" and "all benefit from scale" sound like an oxymoron to me. Implementing all the suggestions you listed would significantly c
by moonlighter 15y ago
"costly one-time background checks" and "all benefit from scale" sound like an oxymoron to me. Implementing all the suggestions you listed would significantly cut into their revenues and make their business model obsolete.
- gojomo 15y agoHigh-fixed setup costs, low marginal costs make a defensible moat. That's the classic case of a returns-to-scale monopoly. Background checks are a one-time cost per new participant. It may be costly (in money or time) to set up your initial account, and acquire a positive reputation via a long history of mutual reviews... but then you're part of a large pre-vetted community. Do you then want to go through that procedure many times with every new upstart? Or just once with the largest market?