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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: Maurice Winn who wrote (8023)8/31/2001 5:01:40 AM
From: elmatador  Read Replies (1) | Respond to of 74559
 
Because it is costly and time consuming to acquire and analyse information an increase in complexity will favour big firms -that can afford these costs and the time taken) and a decrease in complexity will favour small firms.

Complexity increases the costs of transactions and act as barrier of entry into established markets. As a result, incumbents have no incentive in decreasing complexity and the resulting costs of transactions. Hence -regardless of all that we read- B2B and B2C are not very likely to appear since they mean a decrease in complexity and a decrease in transaction costs. Because this would result in competition appearing to take away market from the established incumbents.

One day crash course in economics and I already can use this thing.

PS: And anyone trying to take on the incumbents will face defeat: Freddy Laker Peoples Air crashed. De Lorean car factory crashed. CLECs crashed.