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To: Gerald R. Lampton who wrote (20076)	6/17/1998 2:46:00 AM
From: Bearded One	Respond to of 24154

Fair enough. Oh well. He's good at macroeconomics, anyway.

To: Gerald R. Lampton who wrote (20076)	6/17/1998 3:46:00 AM
From: Charles Hughes	Read Replies (1) \| Respond to of 24154

>>>Here is a link to the entire Greenspan statement: interactive.wsj.com. And, yes, it definitely contains some very pointed criticisms of the network effects literature.<<< I don't know if they would testify to it when their companies are trying to merge, but the idea of network effects and market lock-ins is gospel among silicon valley marketing folks. They aim their efforts at creating it, and they assume that if they fail to get it they will eventually have to find some little survival niche or cash in. Certainly MSFT acts like it has understood this from the beginning, indeed it is largely from watching IBM, Sony and MSFT that the rest of us came to understand the principle. In a way Sony provides the best examples of how to do this and also how not to do it. How not to: Retail beta, punitive license fees, no negotiation, etc... How to: The pro video niche, which they own. Best format for pro use, best features, best marketing and comarketing, earliest in with quality product in a new format (3/4" beta casette.) As I have said before, I think this was BG's epiphany, the idea of network effects (be first to the widest market with whatever you've got), and he has based the company on it since at least 1978. That and a very active legal division, and other ways of projecting power. The man knows his Sun Tsu. JMHO. Chaz