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Sep 7Liked by Mike Fisher

I think there is a strong relationship between network effects that you mentioned in the previous article and elasticity. The cost of moving to an alternative will increase if the marketplace shows network effects (e.g. social networks, Facetime).

This discussion also reminds me concepts of path dependence and lock-ins. They have been around for years (even before marketplaces), and have been used to describe increasing returns to adoption especially for technologies. In summary, the cost of not adopting and/or moving to another technology increases as the number of existing adopters increase. This might in fact reinforce sub-optimal outcomes (e.g. QWERTY keyboards still being used even though they were designed to intentionally slow down typing speed). This article might be of interest if anyone is interested in learning more about path dependence and lock-ins. https://fbaum.unc.edu/teaching/articles/Arthur_EJ_1989.pdf

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