4 ms·
> A certain amount of centralization is good but too much makes it difficult. The Medelin drug cartel story. I wonder what monopolistic entities are working ef
by anyfactor 5y ago
> A certain amount of centralization is good but too much makes it difficult.
The Medelin drug cartel story. I wonder what monopolistic entities are working effectively yet we don't realize it.
- godelski 5y agoI think natural monopolies are pretty common wherever there is a network effect. Depending on what you mean by effective, I'd say that Facebook has an effective monopoly. We could say oil or web hosting has a centralized oligopoly. I should refine my first comment by stating that there is a trend to centralization with markets that depend on network effects. This is simply because power in these markets isn't linear with respect to the number of users, but rather super-linear. Momentum is a key aspect.