-
Strategies for a discontinuous future.





Consulting & advisory, research notes, in the press, about bubblegen,
next wednesdays.





Friday, October 17, 2003
 


You know, we are slowly seeing a paradigm shift in value creation and redistribution with commission-based business models like this. These models are radically different in the boundaries they set between consumers and 'the firm', and also create an ecosystem around them with completely different incentives than the one the traditional firm does.

This is the kind of the thing the net really enables, because transaction costs (despite the 'mental transaction costs' argument, which makes no economic sense) are very small - markets really are essentially frictionless. If you think about it, economics argues that neither micropayments nor e-commerce will really work, because of problems like adverse selection and massive substitution. But the economics of this model are pretty good - I think there's a very bright future for models like this.

-- umair // 4:41 PM //


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