On 25 Sep 2007, at 00:36, Nick Arnett wrote:

> On 9/24/07, jon louis mann <[EMAIL PROTECTED]> wrote:
>
>>
>> not sure waht you mean about--
>> -- a feedback-based market can't self-regulate
>> goods and services that violate the law of diminishing
>> returns, a/k/a network effects.
>
>
> For most products, the more you sell, the lower the marginal value  
> -- that's
> decreasing returns.  In products subject to network effects, the  
> more you
> sell, the more valuable each one becomes.  If there's one telephone  
> on a
> network, it is worthless.  If there are two, it's worth something,  
> but not
> much.  As more people have them, each one can call more people, so  
> the value
> of each phone goes up.  It's the same with operating systems.  The  
> more you
> sell, the more valuable the operating system itself becomes, since  
> it's more
> attractive to software developers when there are more users.
>

But for developers that leads to numerous competing applications in  
every niche which makes alternative platforms with less competition  
with other developers more attractive.

Big fish, small pond Maru

-- 
William T Goodall
Mail : [EMAIL PROTECTED]
Web  : http://www.wtgab.demon.co.uk
Blog : http://radio.weblogs.com/0111221/

"Build a man a fire, and he will be warm for a day. Set a man on fire  
and he will be warm for the rest of his life" - Terry Pratchett


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