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There’s a name for that: technical arbitrage. Not something you can build a long term company on, because others get wind of it sooner or later.
by master_crab 1y ago
There’s a name for that: technical arbitrage. Not something you can build a long term company on, because others get wind of it sooner or later.
- nradov 1y agoSometimes you really can build a long-term company on technical arbitrage when the established competitors are incapable of significant improvement due to misaligned internal incentives. Sometimes executives will allow a company to die instead of fixing it because that outcome maximizes their own personal income or career trajectory: this is one aspect of the principal-agent problem.