Re: [tlug] Amazon Kindle

["Stephen J. Turnbull" <stephen@example.com>]

CL writes:

 > I believe that The Divine Gospel of Saint John Maynard says "... only 
 > makes sense UNTIL there are strong network externalities."

If there are no network externalities, the market won't increase fast
enough simply due to price decreases to make up for those price
decreases.  Only if you can increase market share does it work.  That
means a price war.

Once there are network externalities, you're in a very risky world,
unless there are not economies of scale.  Then there's no particular
incentive to get huge, and no need for a winner takes all shootout.

 > > It doesn't mean there isn't hope for "rational openness", but the
 > > argument you make is a non-starter.
 > 
 > A non-starter _today_ but not always.

What I'm saying here is that the *reason* given is wrong.  The reason
that players shook out is not because prices decreased and increased
the market.

There are other valid reasons.