, 6 tweets, 2 min read Read on Twitter
This point in @benthompson post today makes me think about Brian Arthur's increasing returns idea, and how aggregators reach tipping points where their power starts accelerating, not diminishing. It's kind of frightening in its implications, but seems to be the case.
@benthompson Which takes me back to another thought I had, which was totally raw and I've been noodling on more, to the extent technology permeates into industries that historically had diminishing returns, what does that mean for industry structures and concentration?
As the quote says, increasing and diminishing returns have always coexisted but is there a point where traditional industries "flip" to increasing returns dynamics? Isn't that what some of these mega funded startups in traditional industries are going after trying to jump worlds?
And are there incumbents in traditional industries employing technology fast enough and deep enough to accrue increasing returns style power and profits? Is industry concentration solely lax antitrust or sclerotic innovation, and not to some extent increasing returns diffusing?
Would love to see some sort of analysis on the changing economics of scale over time
I am a slow learner
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