2 ms·
Two thoughts: 1) It's not an accident that Monopoly looks like this. Monopoly was an intentional demonstration by a Georgist that if everyone starts in the sam
by pessimizer 3y ago
Two thoughts:
1) It's not an accident that Monopoly looks like this. Monopoly was an intentional demonstration by a Georgist that if everyone starts in the same space with the same capital, eventually one player will own all of the other players. It originally had a second phase (Prosperity) showing that you could change the rules and have things turn out differently.
2) This model has invisible, magical "allocators," but there are material ways by which wealth attracts more wealth. If you're wealthy, you can buy heavily when prices are low and not buy at all (or even sell) when prices are high. You can also buy wholesale at all times, because large purchases/purchasers bring down costs for the seller.
There's no doubt for me that most of the benefit of early success in a industry is that you can wait until new entrants are in a fragile, time-constrained situation, and just buy them. You can also buy from suppliers at a high enough volume that they don't even bother to sell to your smaller scale competitors. You can sell at a loss longer than they can.
None of that is investors making decisions, it's just a natural consequence of wealth.