More and more money is needed just to maintain your relative position in the industry and stay in the game. In describing the capital investment needed to maintain a relative placement in the textile industry, Warren Buffett writes:
Over the years, we had the option of…
1. Human Need
2. Causal connection between the good and a need satisfaction
The Network effect results from positive feedback, where success begets success and economies of scale undermine the competition. The effect can be observed with Ebay, Microsoft, or even the largest local newspaper. Once Ebay had established itself as the site to visit in order to sell things, this…
The great lesson in microeconomics is to discriminate between when technology is going to help you and when it’s going to kill…
