Mulling a general idea of a macroeconomics of speed. Imagine an economy where nominal value of goods and services being exchanged, as well as classic transaction costs like search, negotiation, and monitoring costs are near zero. What’s left?
2 things: externalities and speed.
2 things: externalities and speed.
Both regular and crypto economy are tending that way. Supply chain issues often mean the bulk of the price of a thing is a speed premium. To a lesser extent, same with scarce services. Pay more to jump queues. Ditto faster transactions in crypto.
In both cases, the other side of the tradeoff is a major externality: emissions, which might soon be priced in.
Asymptotic condition: everything is free if you can afford to wait long enough. You only pay for speed. The floor of the price might be set by externalities cost.
Asymptotic condition: everything is free if you can afford to wait long enough. You only pay for speed. The floor of the price might be set by externalities cost.
This is a temporal version of freemium. Everybody gets it for free eventually. Higher tiers get it first.
“Free” is perhaps too strong, a weaker condition is: everything converges to price of raw inputs (Page’s law, a stronger version of commoditization)
“Free” is perhaps too strong, a weaker condition is: everything converges to price of raw inputs (Page’s law, a stronger version of commoditization)
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