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Yes. You can build a system that efficiently serves the 98% case of "simple" customers. Then you can ignore the 2% unprofitable/complicated customers, forcing
by quesera 5y ago
Yes.
You can build a system that efficiently serves the 98% case of "simple" customers. Then you can ignore the 2% unprofitable/complicated customers, forcing them to go to other vendors.
If you're big enough, you starve your competitors of the low-cost/simple customers. So their cost structure goes way up, which in turn prices the services out of reach of all other customers except the stupidly profitable, which is to say: gambling and porn.
(This has parallels to the USPS v. FedEx/UPS problem in the US, with the exception that the USPS is required to serve all customers, so no one is completely without service)