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Much of theory and thinking on markets recognizes information assymmetries. That's one reason trust, reputation and enforceability of contract matter. People
by chernevik 13y ago
Much of theory and thinking on markets recognizes information assymmetries. That's one reason trust, reputation and enforceability of contract matter. People buy stuff in functioning markets without full knowledge or transparency all the time.
And sure, some decisions are so clearly lousy that they can't be respected / enforced -- such as a contract for slavery. But they are few and far between. Saying an iPhone is the same thing as indentured servitude is a pretty long reach.
- chii 13y ago> People buy stuff in functioning markets without full knowledge or transparency all the time. but just the threat of consumer reaction made possible by consumer watch dogs is enough to enforce good behaviour. Sure, the average consumer does not need to know the inner workings of their toaster, but if a manufacturer made a shoddy design, they will be soon found out. This isn't true in SaaS(S). A security vulnerability can and would remain a secret but for public disclosure of various watch dogs (and even then, these things are hard to verify). ANd this is just one example.