Money

Nature of Goods

GOODS, according to the ‘Austrian School of Economics’, require the following:

1. Human Need

2. Causal connection between the good and a need satisfaction

Network effect

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…

Technology

Technology’s doubled edged sword is described by Charles Munger in ‘Poor Charlie’s Almanack’:

The great lesson in microeconomics is to discriminate between when technology is going to help you and when it’s going to kill…