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What I think when I think about BIG TECH tech - after the #SIEPRSummit.
Bottom line: “We have a BIG problem – especially with Google and Facebook – wake up and DON'T say it’s not about antitrust. Unprecedented phenomena require new thinking.” Let me elaborate in this THREAD
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Bottom line: “We have a BIG problem – especially with Google and Facebook – wake up and DON'T say it’s not about antitrust. Unprecedented phenomena require new thinking.” Let me elaborate in this THREAD
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The economics. Markets with formidable network externalities, entry barriers, endogenous sunk costs, business models with ‘free’ goods, consumer behavioural biases and inertia (defaults are kings) -> endemic market failures. 1st fundamental theorem of welfare economics FAILS
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The size of the problem. Take whole US population, add total EU population. Multiply by a factor 3: you get size of customer base of FB or of G. Dimension is staggering. (BASTA with the MySpace counterexample! They’ve been dominant for over a decade – wait another 10 years?).
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