Sunday, April 27, 2014

Intrinsic properties...

Rare that a journalistic article about business and economics is mathematically competent. But here are the "intrinsic properties" of computer and internet innovations", at least according to The Observer's  John Naughton today:
"They are: near-zero marginal costs (which confer massive advantages on early movers and investors); network effects (which lead to winner-takes-all outcomes, as has happened with search and social networking); the way in which online phenomena follow power law statistical distributions that apply when a few players capture the overwhelming bulk of the action, leaving everyone else scrabbling around in a "long tail"; and technical lock-in (of the kind that has enabled Amazon to exert an iron grip on cloud computing)."

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