Four short links: 16 April 2012

Competition, Creation, Minimalism, and Monop{ol,son}y

  1. Peter Thiel’s Class 4 Notesin perfect competition, marginal revenues equal marginal costs. So high margins for big companies suggest that two or more businesses might be combined: a core monopoly business (search, for Google), and then a bunch of other various efforts (robotic cars, TV, etc.). Cash builds up because it turns out that it doesn’t cost all that much to run the monopoly piece, and it doesn’t make sense to pump it into all the side projects. In a competitive world, you would have to be funding a lot more side projects to stay even. In a monopoly world, you should pour less into side projects, unless politics demand that the cash be spread around. Amazon currently needs to reinvest just 3% of its profits. It has to keep running to stay ahead, but it’s more easy jog than intense sprint. I liked the whole lecture, but this bit really stood out for me.
  2. Kickstarter Disrupting Consumer Electronics (Amanda Peyton) — good point that most people wouldn’t have thought that consumer electronics would lend itself to the same funding system as CDs of a one-act play about artisanal beadwork comic characters. Consumer electronics as a market has been ripe for disruption all along. That said, it’s ridiculously not obvious that disruption would come from the same place that allows an artist with a sharpie, a hotel room and a webcam a way to make the art she wants.
  3. OmniOS — OmniTI’s JEOS. Their team are engineers par excellence, so this promises to be good.
  4. Understanding Amazon’s Ebook Strategy (Charlie Stross) — By foolishly insisting on DRM, and then selling to Amazon on a wholesale basis, the publishers handed Amazon a monopoly on their customers—and thereby empowered a predatory monopsony. So very accurate.
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