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You’ve identified the difference between a monopoly and an enduring monopoly. A monopoly exists as soon as you invent (and sell) something new. But the moats e
by svnt 3y ago
You’ve identified the difference between a monopoly and an enduring monopoly.
A monopoly exists as soon as you invent (and sell) something new. But the moats enable the monopoly to have more longevity, which increases its anticipated value, which is what VCs sell.
Side note: the word new is doing a lot of nuanced work here.
- maxlamb 3y agoI guess the word "monopoly" is not super precise but the gist of the definition seem to imply otherwise. "a single seller or producer that excludes competition from providing the same product". If any competition can provide the same product as soon as they learn about it, it's not a monopoly. Monopoly implies the inability of competitors to enter the market at all.
- svnt 3y agoYes, that’s the play on (or expansion of) definitions that he is making. The dictionary gives you a moment in time, but if a monopoly had a lifecycle, what is the earliest thing you can call a monopoly? Even at the earliest stage it technically excludes competition because they don’t know about it yet, and there is inertia in them constructing and making the same offering. Not a great barrier, but really not very far removed from the concept of a trade secret.