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With near zero marginal costs associated with software, it makes sense for a winner take all outcome to be the equillibrium.
by cortesoft 5y ago
With near zero marginal costs associated with software, it makes sense for a winner take all outcome to be the equillibrium.
- munificent 5y ago...which is why you need strong regulatory oversight if you want the software market to have any functioning level of efficiency. The economies of scale are enormous in software (and data-oriented businesses in general). That's good for the efficiency of any given enterprise, but it pushes very heavily towards monopolization and zero competition without regulatory force to counterbalance.
- kortilla 5y agoThat doesn’t hold at all unless there is significant lock-in that raises switching cost. If there is a company sitting there with no overhead collecting $10m/year for software all of its customers hate, it’s ripe for competition to take it overnight.
- dontreact 5y agoMakes sense for who? If all competition becomes winner takes all, then most humans become losers.
- cortesoft 5y agoMakes sense as an equilibrium point. I wasn't making a moral claim.