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Software always has much more extreme economies of scale than any physical commodity, and often has network effects on top of that. So it seems like a bad compa
by ameliaquining 1y ago
Software always has much more extreme economies of scale than any physical commodity, and often has network effects on top of that. So it seems like a bad comparison. Do you happen to have any statistics comparing levels of market concentration across different kinds of physical goods?
- runako 1y agoSure, it would be equally difficult to start a new company making non-niche[1] t-shirts or toilet paper or plastic cups or light bulbs today. 1 - "non-niche" a/k/a the undifferentiated "standard-quality" product in the middle of the niche. This is not about someone inventing a longer-lasting light bulb or stain-resistant t-shirt. The best analogue to farmers selling commodity soybeans is something closer to plastic food wrap or aluminum foil. Not a lot of small operators playing in or entering those spaces either.