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in theory it should solve itself, companies that adapt or new companies that form will be more efficient and cost effective and put these other companies out of
by ren_engineer 4y ago
in theory it should solve itself, companies that adapt or new companies that form will be more efficient and cost effective and put these other companies out of business.
In the short term these people can use words to justify decisions but eventually it will show up in the bottom line and everybody will find out which model is superior
- SQueeeeeL 4y agoThis is discussed very heavily in economic theory. Basically possession of capital is such a powerful advantage it basically destroys a lot of the adaptation that should be forced. You see this a lot with VC companies, like Uber needing to subsidize every ride or Internet providers monopolizing by endlessly buying each other and merging instead of improving customer service.
- 99b12e2d358bb03 4y agoCan you elaborate on this or offer some resources to learn more? This squares with my experience, but I haven't seen this thought specifically elaborated on. I am very interested to learn more. This would be an excellent example of a market failure and a key area of policy research.